Question

Match List-I with List-II

List-I (Term)	List-II (Interpretation)
(A) Journal	(I) The consumer reduces its consumption when its price falls and increases its consumption when its price rises
(B) Ledger	(II) As the price of a commodity rises, its supply extends and as the price falls, its supply contracts, with other things remaining the same
(C) Law of Supply	(III) The principal or chief book of account, also known as the final book of entry
(D) Giffen's Good	(IV) A book of account in which records of business transactions enter for the first time in a chronological order

Choose the correct answer from the options given below

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

Hint:

To distinguish between the books of account:
Journal = Original/first entry in chronological order (IV).
Ledger = Final entry/principal book (III).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
This matching question evaluates key concepts from accounting (books of entry) and microeconomics (demand and supply relationships).

Step 2: Detailed Explanation:
Let us analyze and match each term with its correct definition:
1.Journal (A): A journal is the book of prime entry or original entry.
Financial transactions are recorded here for the first time in chronological order from source documents.
Thus, (A) matches with (IV).
2.Ledger (B): A ledger is the principal or chief book of account.
Transactions are posted from the journal into specific accounts in the ledger, which is also known as the book of final entry.
Thus, (B) matches with (III).
3.Law of Supply (C): This law states that, other things being equal, there is a direct relationship between price and quantity supplied.
As the price rises, supply extends; as the price falls, supply contracts.
Thus, (C) matches with (II).
4.Giffen's Good (D): A Giffen good is a highly inferior good that violates the Law of Demand.
As its price falls, consumers buy less of it; as its price rises, they buy more of it, resulting in an upward-sloping demand curve.
Thus, (D) matches with (I).
Combining these matches:
\[ \text{(A)-(IV), (B)-(III), (C)-(II), (D)-(I)} \]

Step 3: Final Answer:
The correct matching sequence is (A) - (IV), (B) - (III), (C) - (II), (D) - (I).