Question : At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
Option 1: Creditor’s Account
Option 2: Realisation Account
Option 3: Partner’s Capital Account
Option 4: Profit & Loss Account
Correct Answer: Partner’s Capital Account
Solution : The general reserve balance is transferred to each partner's capital account according to their prior profit-sharing arrangement. This is done to ensure that the candidate for the late partner receives the necessary portion of the Firm income. Therefore, the appropriate shares are credited to each partner's capital account.
Hence the Correct answer is option 3.
Question : On dissolution of firm, which item is credited to the realisation account?
Question : On dissolution of a firm, a partner paid Rs. 6,500 for firm’s realisation expenses. Which account will be debited?
Question : At the time of dissolution partner's loan (cr balance ) account is transferred to:
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