Question

Match List-I with List-II.

List-I	List-II
(A) Capital Reserve	(I) Cash and Cash Equivalent
(B) Call in advance	(II) Intangible Fixed Assets
(C) Licence and Franchise	(III) Other Current Liabilities
(D) Marketable Securities	(IV) Reserve and Surplus

• A. (A)-(IV), (B) - (III), (C)- (II), (D) - (I)
• B. (A)-(I), (B)-(II), (C)- (III), (D) - (IV)
• C. (A)-(IV), (B) - (III), (C)- (I), (D) - (II)
• D. (A)-(II), (B) - (I), (C) - (IV), (D) - (III)

Answer 1

The Correct Option is A

The task is to match items from List-I to List-II based on their accounting categorizations. Let's analyze each item for a proper match:

(A) Capital Reserve: Capital reserves are part of the Reserve and Surplus category as they represent accumulated funds set aside out of profits. Match: (IV) Reserve and Surplus.

(B) Call in Advance: Amounts received for shares but which are not yet due are categorized as Other Current Liabilities. Match: (III) Other Current Liabilities.

(C) Licence and Franchise: These are rights acquired by businesses, categorized as Intangible Fixed Assets. Match: (II) Intangible Fixed Assets.

(D) Marketable Securities: These are investments that can be easily converted into cash, classifying them as Cash and Cash Equivalent. Match: (I) Cash and Cash Equivalent.

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

Answer 2

Let’s analyze each pair in List-I and List-II to determine the correct match:

• (A) Capital Reserve
  A capital reserve is a reserve that is created from capital profits or surpluses, and it is part of the company’s reserve and surplus in the balance sheet.
  Therefore, (A) Capital Reserve matches with (IV) Reserve and Surplus.
• (B) Call in advance
  Call in advance refers to amounts paid by shareholders in advance for future calls on shares. This amount is typically classified under other current liabilities as it is a liability to the company until it is called.
  Hence, (B) Call in advance matches with (III) Other Current Liabilities.
• (C) Licence and Franchise
  Licences and franchises are rights granted for a specific period and are typically classified as intangible fixed assets.
  So, (C) Licence and Franchise matches with (II) Intangible Fixed Assets.
• (D) Marketable Securities
  Marketable securities are short-term investments that are easily convertible into cash and are classified under cash and cash equivalents on the balance sheet.
  Therefore, (D) Marketable Securities matches with (I) Cash and Cash Equivalent.

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