Question : On dissolution of a firm, bank overdraft is transferred to :

Option 1: Bank Account
Option 2: Realisation Account

Option 3: Partners’ Capital Account

Option 4: Partners' Loan Account

Question

Question : On dissolution of a firm, bank overdraft is transferred to :

Option 1: Bank Account

Option 2: Realisation Account

Option 3: Partners’ Capital Account

Option 4: Partners' Loan Account

Team Careers360 · Accepted Answer

Correct Answer: Realisation Account

Solution :

Bank overdraft is an external liability. Every external liability has to be paid off at the time of dissolution of partnership firm. Hence it will be transferred to Realisation A/c.

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Question : On dissolution of a firm, bank overdraft is transferred to : Option 1: Bank AccountOption 2: Realisation Account Option 3: Partners’ Capital Account Option 4: Partners' Loan Account

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Question : On dissolution of a firm, bank overdraft is transferred to :

Option 1: Bank Account
Option 2: Realisation Account

Option 3: Partners’ Capital Account

Option 4: Partners' Loan Account

Question : Arrange the following in the correct order:

(A)