Match the following

List I	List II
a. Capital is the difference between	1. Cost of goods sold from sales
b. Gross profit is ascertained by deducting	2. To find out cost of production
c. Wages paid for erecting machines are	3. Assets and liabilities
d. The manufacturing account is prepared	4. Debited to machinery account

The correct match is based on the following accounting principles:
a. Capital is the difference between (3) Assets and liabilities: Capital (or Owner's Equity) is defined as Total Assets minus Total Liabilities.
b. Gross profit is ascertained by deducting (1) Cost of goods sold from sales: Gross profit is calculated in the Trading Account by subtracting the Cost of Goods Sold (COGS) from Net Sales.
c. Wages paid for erecting machines are (4) Debited to machinery account: This is a capital expenditure, which increases the value of the asset (Machine) and is added to the cost of machinery rather than being treated as a revenue expense.
d. The manufacturing account is prepared (2) To find out cost of production: The purpose of a manufacturing account is to determine the cost of goods produced during the accounting period.

Therefore, the matching pairs are:
a-3, b-1, c-4, d-2
D. a-3, b-1, c-4, d-2

ans should be option d

ANSWER (B) IS WRONG
THE CORRECT ANSWER IS (D)