Question : On dissolution of a firm, a partner paid Rs. 6,500 for firm’s realisation expenses. Which account will be debited?
Option 1: Cash Account
Option 2: Realisation Account
Option 3: Capital Account of the Partner
Option 4: Profit & Loss A/c
Answer (1)
22nd Jan, 2024
Correct Answer: Realisation Account
Solution : The Realisation Account is debited and the Partner's Capital Account is credited when a partner pays the firm's realisation costs.
Hence the Correct answer is option 2.
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