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

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).

Answer 2

Capital Reserve is matched with Reserve and Surplus (A)-(IV), as it is a part of share- holders’ equity.
Call in advance is matched with Other Current Liabilities (B)-(III), as it is considered a liability until due.
Licence and Franchise is matched with Intangible Fixed Assets (C)-(II), as these are long-term intangible assets.
Marketable Securities is matched with Cash and Cash Equivalent (D)-(I), as they are highly liquid assets.