Question : At the time of the dissolution of the partnership firm. The amount of the Employees Provident Fund shown on the liabilities side of the balance sheet is transferred to
Option 1: Cash account
Option 2: partner's capital account
Option 3: realization account
Option 4: None of the above
Correct Answer: realization account
Solution : Answer = realization account. In case of dissolution of a partnership firm, Firstly EPF transferred the credit side of the realisation account and then paid.[treated as outsiders liabilities] (i) Transferred entry E.P fund a/c....Dr To Realisation a/c (ii) Paid entry Realisation a/c.....Dr To Bank a/c Hence, the correct option is 3.
Question : On dissolution of a partnership firm, the amount received from the sale of assets is debited to
Question : In case of dissolution of a partnership firm, what will be the treatment of investment fluctuation Reserve if the value of investment is not given in the assets side of the balance sheet?
Question : On the firm's dissolution, on the realization of goodwill (which was shown in the Balance Sheet) will be debited to:
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