Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of the firm, partner's capital accounts are closed through-

Options:

Realisation Account

Drawings Account

Bank Account

Loan Account

Correct Answer:

Bank Account

Explanation:

The correct answer is Option (3) → Bank Account

At the time of dissolution of a firm, all assets are sold and liabilities are paid through the Realisation Account. After that, the final settlement of partners’ capital balances is made through the Bank Account.