When a firm is dissolved, Provision for

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

When a firm is dissolved, Provision for Bad and Doubtful Debt Account :-

Options:

Is transferred into Realisaion Account and paid out.

Is transferred into Realisaion Account but not paid out.

Is not transferred into Realisaion Account.

Is not transferred into Realisaion Account and also not paid out.

Correct Answer:

Is transferred into Realisaion Account but not paid out.

Explanation:

The correct answer is Option (2) → Is transferred into Realisaion Account but not paid out.