Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of a partnership firm, if a partner undertakes the responsibility to make payment of a liability of the firm, then, the account to be debited is:

Options:

Realisation Account

Cash account

Partner's Capital Account

None of the above

Correct Answer:

Realisation Account

Explanation:

For a liability which a partner takes responsibility to discharge, the journal entry will be:
Realisation A/c Dr.
    To Partner’s Capital A/c