Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of the firm, Partner's Capital Accounts are closed through:

Options:

Loan A/c

Bank A/c

Drawings A/c

Realisation A/c

Correct Answer:

Bank A/c

Explanation:

Bank a/c is prepared at last to close the accounts of the partners. It may be noted that the aggregate amount finally payable to the partners must equal to the amount available in bank and cash accounts. Thus, all accounts of a firm are closed in case of dissolution.