Match List-I with List-II

List-I	List-II
(Transaction)	(Relevant account)
(A) Settlement of Partners Loan	(I) Credit side of Realization A/c
(B) Transfer of liabilities	(II) Partner's Capital will be credited
(C) Transfer of Assets	(III) Credit Side of Bank A/c
(D) Remuneration payable to partner	(IV) Debit Side of Realization A/c

Choose the correct answer from the options given below:

During dissolution of partnership, each transaction has a specific accounting treatment:

(A) Settlement of Partners Loan → (III) Credit side of Bank A/c

When partner's loan is paid off:

Partner's Loan A/c Dr.

To Bank A/c

Partner's loan is an external liability and is settled by paying cash/bank.

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(B) Transfer of liabilities → (I) Credit side of Realization A/c

When liabilities are transferred to Realization Account:

Liabilities A/c Dr.

To Realization A/c

All external liabilities (except partner's capital and loan) are transferred to Realization Account for discharge.

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(C) Transfer of Assets → (IV) Debit Side of Realization A/c

When assets are transferred to Realization Account:

Realization A/c Dr.

To Assets A/c

All assets (except cash/bank) are transferred to Realization Account at book values for realization.

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(D) Remuneration payable to partner → (II) Partner's Capital will be credited

When remuneration for dissolution work is due to a partner:

Realization A/c Dr.

To Partner's Capital A/c

Remuneration is a realization expense and increases the partner's claim, hence capital is credited.

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Correct matching: (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

Option 2 is correct.