Question : On firm’s dissolution, which one of the following account should be prepared at the last?
Option 1: Realisation Account
Option 2: Cash Account
Option 3: Partner’s Loan Account
Option 4: Partner’s Capital Accounts
Correct Answer: Realisation Account
Solution : Realization accounts are prepared with the intention of closing the books of the dissolved Firm and calculating profit or loss on the sale of assets and payment of liabilities.
Hence the Correct answer is option 1.
Question : On firm dissolution, which one of the following accounts should be prepared at the last?
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 of partnership firm, fictitious assets are transferred to
Question : At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to :
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