Question

Group ‘A’	Group ‘B’
(a) Bad debts	(1) Dishonour of cash bill
(b) Excess of assets over liabilities	(2) Indicates profit of joint venture
(c) Notary public	(3) Indicates loss of joint venture
(d) Credit balance of joint venture a/c	(4) System software
(e) Operating system	(5) Drawings
	(6) Capital
	(7) Recoverable amount from debtors
	(8) Non-recoverable amount from debtors

Answer 1

Group ‘A’	Group ‘B’
(a) Bad-debts	(8) Non-recoverable amount from debtors
(b) Excess of Assets over Liabilities	(6) Capital
(c) Notary Public	(1) Dishonour of cash bill
(d) Credit Balance of Joint Venture A/c	(2) Indicates profit of joint venture
(e) Operating System	(4) System software

Explanation

Point (a) in Group ‘A’ is matched with point (8) in Group ‘B’

The amount that becomes irrecoverable from the debtors is known as bad debts. Bad debts are losses for a business and, therefore, are shown on the debit side of the Profit and Loss Account.

Point (b) in Group ‘A’ is matched with point (6) in Group ‘B’

Capital is the amount invested by a proprietor in the business. It is ascertained by deducting the liabilities from the assets of a business i.e.

Capital = Assets - Liabilities

Point (c) in Group ‘A’ is matched with point (1) in Group ‘B’

Notary Public is an officer appointed by the Central or State Government and has the power of noting the negotiable instruments at the time of their dishonour.

Point (d) in Group ‘A’ is matched with point (2) in Group ‘B’

Credit balance of Joint Venture Account implies the profit amount that is transferred to co-venturers’ account in their agreed ratio. It is a nominal account prepared to ascertain the profits earned or losses incurred by a joint venture. It records all the expenses and losses on the debit side while sales proceeds and goods taken over by the co-venturers are credited to this account.

Point (e) in Group ‘A’ is matched with point (4) in Group ‘B’

System software is a program designed to operate and control the computer hardware and for providing the platform for running the application software. It is sub-divided into two categories: Operating System and Utility Software.