Question : What is the treatment of provisions against assets on dissolution of a firm?
Option 1: Provisions against assets are credited to Realisation A/c.
Option 2: Provisions against assets are credited to revaluation A/c.
Option 3: Provisions against assets are debited to Realisation A/c.
Option 4: Provisions against assets are credited to partner's capital account.
Correct Answer: Provisions against assets are credited to Realisation A/c.
Solution : Answer = Provisions against assets are credited to Realisation A/c. Treatment of Provision against Assets on dissolution of firm will Be credited to Realisation alc But no need to pay live other liabilities (outsiders liabilities). Hence, the correct option is 1.
Question : On dissolution of a firm, a partner took over Rs.34,000 investments for Rs.28,000. Which one of the following accounts will be debited/credited with how much amount?
Question : On dissolution of a firm, a partner paid Rs. 6,500 for firm’s realisation expenses. Which account will be debited?
Question : In the case of fixed capital, interest on capital
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