Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

How many times a partnership firm prepares realisation account?

Options:

1

2

3

Infinity

Correct Answer:

1

Explanation:

Realisation account is prepared once in life of a partnership firm because it is prepared by the firm at the time of dissolution of firm and after dissolution, there is no existence of firm. So, it is prepared only once.