Match List-I with List-II

List-I	List-II
(Different accounts. )	(Related transaction.)
(A) profit and loss account.	(I) dissolution of partnership.
(B) profit and loss appropriation account.	(II) dissolution of firm.
(C) revaluation account	(III) interest on loan to partner.
(D) realization account.	(IV) transfer to reserve.

Choose the correct answer from the options given below:

Looking at each account and its corresponding transaction:

Profit and Loss Account (A) is prepared to calculate the net profit or loss of the business. Interest on loan to partner is treated as a business expense (charge against profit) and appears in this account, similar to interest on loan from any creditor.

Match: (A) → (III)

Profit and Loss Appropriation Account (B) shows how the profit is distributed among partners after it has been calculated. Transfer to reserve is an appropriation of profit (setting aside profit for future use), not a business expense. It appears after the profit calculation.

Match: (B) → (IV)

Revaluation Account (C) is prepared when there's a reconstitution of partnership - admission, retirement, or death of a partner. The term "dissolution of partnership" means change in the existing partnership agreement (relationship between partners changes but the firm continues). During such changes, assets and liabilities are revalued.

Match: (C) → (I)

Realization Account (D) is prepared only when the firm is completely closed down. "Dissolution of firm" means the business ceases to exist entirely. All assets are sold, liabilities are paid, and the business is wound up through this account.

Match: (D) → (II)

The correct matching is: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer: Option 4