Question : -----------------account is prepared at the time of dissolution.
Option 1: profit and loss appropriation account
Option 2: profit and loss adjustment account
Option 3: realisation account
Option 4: profit and loss account
Correct Answer: realisation account
Solution : Answer = realisation account. At the time of dissolution, when assets are realised and liabilities paid, the realisation account is prepared. Hence, the correct option is 3.
Question : -----------------account is prepared at the time of dissolution of the partnership while ------------------account is prepared at the time of dissolution of the partnership firm.
Question : Where is Interest on drawings shown in the final accounts of the firm?
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