Match the items of List – I with those of List – II and choose the correct code : Codes : List – I List – II a. Provision for taxation i. Current Assets b. Live-stock ii. Unsecured loans c. Sundry Debtors iii. Fixed Assets d. Interest accrued on unsecured loans iv. Provisions
Solution: Matching Accounting Items
The question requires matching items from List I with their correct classifications in List II.
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a. Provision for taxation matches with iv. Provisions. A provision is an amount set aside for future obligations, such as taxes.
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b. Live-stock matches with iii. Fixed Assets. Live-stock owned by a business for farming or breeding purposes are considered long-term assets.
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c. Sundry Debtors matches with i. Current Assets. Debtors represent amounts owed to the company by customers, expected to be recovered within a year.
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d. Interest accrued on unsecured loans matches with ii. Unsecured loans. This represents interest expense incurred on loans that are not backed by collateral. In this context, it's matched to the related loan category.
Therefore, the correct matching is a-iv, b-iii, c-i, d-ii.
Important Questions from Balance sheet statement
___________ is a record of assets and liabilities of any firm.
A businessman can find out what his business owns and what it owes from _______.
Which of the following options is an INCORRECT pair considering a firm's balance sheet?
A trial balance shows
(i) Credit balances
(ii) Debit balances
Which of the following pairs is NOT correctly matched in the context of account balances shown in the Trial Balance?
