Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

At time of dissolution of partnership firm, the balance of profit and loss account shown in the assets side of Balance sheet of the firm is transferred to:

Options:

Realisation Account

Creditor's Account

Partner's Capital Account

Profit & Loss Account

Correct Answer:

Partner's Capital Account

Explanation:

For transfer of profit and loss debit balance, if any, to partners’ capital accounts in their profit sharing ratio:
Partners’ Capital A/c (individually) Dr.
To profit and loss A/c