CUET Preparation Today
On dissolution of a firm, bank overdraft is transferred to: |
Cash Account Bank Account Realisation Account Partner's Capital Account |
Realisation Account |
The correct answer is Option (3) → Realisation Account On dissolution, bank overdraft is an external liability, so it’s transferred to the credit side of the Realisation A/c. Bank Overdraft A/c Dr.
To Realisation A/cCr.
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