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
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.
Question : At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
Question : On firm’s dissolution, which one of the following account should be prepared at the last?
Question : On firm’s dissolution, when a partner voluntarily gives his personal asset to firms’ creditor as payment, the account credited will be :
Question : Unrecorded liability, when paid on dissolution of a firm is debited to :
Question : Realisation Expenses, 15,000 were paid by the firm on behalf of a partner. The Journal Entry passed will be:
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