Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Which of the following accounts or statement can be made at the time of death of a partner by the partnership firm?
A) Revaluation A/c
B) Realisation A/c
C) Partner's Capital A/c
D) Partner's Wife A/c
E) Dissolution A/c
F) Partner's Executor A/c
G) Balance Sheet

Options:

B, E, F

A, C, G

A, C, F, G

B, D, E, G

Correct Answer:

A, C, F, G

Explanation:

The revaluation A/c is made to revalue assets and reassess liabilities. Partner's Capital A/c  is made for the partners when capital accounts are made with the fluctuating capital method. Partner's Executor A/c is made at the time of death of a partner and the deceased partner share will be transferred to his executor A/c. Balance sheet is made at the last to know the financial position of the partnership firm.