Match List-I with List-II

List-I	List-II
Expenses incurred to earn the income	Explanation
(A). Purchase of Stock-in-trade	(I). Expenses towards interest charges during the year on the borrowings
(B). Employees benefit expenses	(II). Diminution in the value of fixed assets
(C). Finance cost	(III). Purchases of goods for the purpose of trading
(D). Depreciation	(IV). Expenses incurred on employees towards salary, wages, leave encashment, staff welfare, etc

Choose the correct answer from the options given below:

(A) Purchase of Stock-in-trade refers to buying goods that are meant for resale in the normal course of business. This directly relates to (III) Purchases of goods for the purpose of trading.

(B) Employees benefit expenses includes all costs related to employees' services. This matches with (IV) Expenses incurred on employees towards salary, wages, leave encashment, staff welfare, etc. These are period costs charged to the Statement of Profit and Loss.

(C) Finance cost represents the cost of borrowing funds. This corresponds to (I) Expenses towards interest charges during the year on the borrowings. Interest on loans, debentures, and other borrowings fall under this category.

(D) Depreciation is the systematic allocation of the depreciable amount of a fixed asset over its useful life. This aligns with (II) Diminution in the value of fixed assets. It represents the reduction in value due to wear and tear, obsolescence, or passage of time.

The correct matching is:

A - III, B - IV, C - I, D - II

Option 4 is correct.