At the time of dissolution of partnership firm, following accounting adjustments are considered : -

A. Partner's current A/c are transferred to respective partner's loan A/c.

B. Accumulated losses are transferred to partners capital A/c in profit sharing ratio.

C. All assets except cash and fictitious assets are transferred to debit side of Realisation A/c.

D. Partner's loan are transferred to Realisation A/c.

E. All external liabilities are transferred to the credit side of Realisation A/c.

Choose the correct answer from the options given below :

B, C and E only

The correct answer is option 4- B, C and E only.

A. Partner's current A/c are transferred to respective partner's loan A/c.- This is not a adjustment during partnership dissolution. Partner current accounts are balanced and transferred to the capital account but they are not directly transferred to loan accounts.

B. Accumulated losses are transferred to partners capital A/c in profit sharing ratio.- Any accumulated losses are distributed among the partners based on their profit-sharing ratio. Partners capital account is debited with amount of share of loss.

C. All assets except cash and fictitious assets are transferred to debit side of Realisation A/c.- All assets are transferred to realisation account  except cash and fictitious because cash is already in hand or bank and fictitious assets are deferred revenue expenditure that are not written off.

D. Partner's loan are transferred to Realisation A/c.- Partner's loan are not transferred to realisation account. They are settled separately.

E. All external liabilities are transferred to the credit side of Realisation A/c.- All outstanding liabilities of the partnership are recorded on the credit side of the Realization Account for settlement. The journal entry for this- Liability Dr. To Realisation A/c.