Question : On the firm's dissolution, furniture was realised at Rs. 50,000. State which account will be credited.
Option 1: Cash Account
Option 2: Realisation Account
Option 3: Profit and Loss Account
Option 4: Patents Account
Correct Answer: Realisation Account
Solution : Answer = Realization account. When assets are realized, the Bank Account will be debited, and the realization account will be credited because the furniture has been already transferred to the realization account. Hence, the correct option is 2.
Question : On firm's dissolution, on realisation of patents (which was shown in Balance Sheet) will be credited to:
Question : X, Y and Z are partners in a firm in the ratio of 4: 3: 2. On the firm's dissolution, the firm's total assets are Rs.4,00,000, and creditors are Rs.20,000. Realisation expenses are Rs.2,000. Assets realised 15% more than the book value. Creditors were paid 2% more.
Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following
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