Match List-I with List-II

List-I	List-II
(A) For the amount of calls received in advance	(I) Calls in Advance A/c   Dr.        To Particular Call A/c
(B) Interest on Calls in Advance is due	(II) Sundry Shareholder's A/c   Dr.        To Bank A/c
(C) The amount of 'Calls in Advance' is adjusted	(III) Bank A/c   Dr.        To Calls in Advance A/c
(D) Interest on Calls in Advance, For Interest Paid	(IV) Interest on Calls in Advance A/c   Dr.        To Sundry Shareholder's A/c

Choose the correct answer from the options given below:

Step 1: Receiving the Advance (A matches with III)

When a shareholder pays their call money before it is officially requested, the company receives cash. Because money is coming in, the Bank Account is debited. Since the company hasn't actually "called" for this money yet, it acts as a temporary liability, meaning the Calls in Advance Account must be credited.

• Entry: Bank A/c Dr. To Calls in Advance A/c

Step 2: Interest Becoming Due (B matches with IV)

The company is obligated to pay interest on the money it received early. This interest acts as a corporate expense, so the Interest on Calls in Advance Account is debited. Because the interest is currently just "due" and hasn't been paid out in cash yet, it creates a payable liability owed directly to the investor.

• Entry: Interest on Calls in Advance A/c Dr. To Sundry Shareholder's A/c

Step 3: Adjusting the Advance (C matches with I)

Once the actual call is formally made by the board of directors, the early payment is officially applied. The temporary liability is now resolved, so the Calls in Advance Account is debited. The funds are then transferred to fulfill the actual call requirement, crediting the Particular Call Account.

• Entry: Calls in Advance A/c Dr. To Particular Call A/c

Step 4: Paying the Interest (D matches with II)

When the company finally pays out the interest, the outstanding liability to the shareholder is cleared. The Sundry Shareholder's Account is debited to close that balance, and the Bank Account is credited because cash is flowing out of the business.

• Entry: Sundry Shareholder's A/c Dr. To Bank A/c

Conclusion:

The correct matching sequence is (A) - (III), (B) - (IV), (C) - (I), (D) - (II), which corresponds to the fourth option in the list.