Question

Match List-I with List-II

List-I	List-II
(A) Intangible assets should be written off as early as possible but not exceeding its estimated life in ......... years	(I) 4
(B) AS ..... deals with intangible assets	(II) 10
(C) In the absence of any agreement, Section ...... of the Indian Partnership Act, 1932 is applicable, which states that the retiring partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his/her money (i.e., based on capital ratio).	(III) 26
(D) Section ...... of the Indian Partnership Act 1932 defines partnership.	(IV) 37

Choose the correct answer from the options given below:

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

Hint:

Recall AS 26, Section 4 and Section 37 of the Partnership Act, and the 10 year limit.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
Each blank in List-I must be filled with one number from List-II. The numbers are 4, 10, 26 and 37. Each is a fact from the Partnership Act or the accounting standards.

Step 2: Match (A):
Intangible assets like goodwill are written off over their useful life, but not beyond 10 years. So (A) matches (II) 10.

Step 3: Match (B):
Accounting Standard 26 deals with intangible assets. So (B) matches (III) 26.

Step 4: Match (C):
Section 37 of the Indian Partnership Act, 1932 covers the right of an outgoing partner. If no agreement exists, he can take 6% interest or a share of profit earned with his money. So (C) matches (IV) 37.

Step 5: Match (D):
Section 4 of the Act defines partnership as the relation between persons who agree to share the profits of a business run by all or any of them acting for all. So (D) matches (I) 4.

Step 6: Compare with the options:
The correct set is (A)-(II), (B)-(III), (C)-(IV), (D)-(I). This is option 2. Option 1 is wrong because it pairs (A) with 4. Option 3 wrongly pairs (A) with 26. Option 4 wrongly pairs (A) with 37.

Final Answer:
The correct matching is (A)-(II), (B)-(III), (C)-(IV), (D)-(I), which is option 2. \[ \boxed{2} \]