Match List-I with List-II

List-I	List-II
(A). Payment of loans due to partners	(i). Realisation A/c Dr To Bank A/c
(B). For settlement of partners' accounts, in case their capital account shows a debit balance.	(ii). Bank A/c Dr. To loan to partners A/c
(C). For settlement of loan by a firm to a partner:	(iii) Bank A/c Dr. To Partner's Capital A/c
(D). For settlement of any unrecorded liability	(iv) Partner's Loan A/c Dr. To Bank A/c

Choose the correct answer from the options given below:

Looking at each transaction and its corresponding journal entry:

(A) Payment of loans due to partners

When the firm pays back a loan taken from partners, the liability (Partner's Loan A/c) decreases and cash goes out.

Entry: Partner's Loan A/c Dr. → To Bank A/c

Matches with (iv)

---

(B) For settlement of partners' accounts, in case their capital account shows a debit balance

A debit balance in Partner's Capital A/c means the partner owes money to the firm. When settled, the partner pays cash to clear this balance.

Entry: Bank A/c Dr. → To Partner's Capital A/c

Matches with (iii)

---

(C) For settlement of loan by a firm to a partner

When a partner returns the loan taken from the firm, cash is received and the asset (Loan to Partners A/c) decreases.

Entry: Bank A/c Dr. → To Loan to Partners A/c

Matches with (ii)

---

(D) For settlement of any unrecorded liability

During dissolution, any unrecorded liability is first recorded in Realisation A/c (as it represents all assets and liabilities taken over), then paid through bank.

Entry: Realisation A/c Dr. → To Bank A/c

Matches with (i)

---

Correct matching: A-(iv), B-(iii), C-(ii), D-(i)

Option 1 is correct.