Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
Which account is prepared on dissolution of a partnership firm?
Options:
Revaluation A/c
P& L Appropriation A/c
Realisation A/c
None of the above
Correct Answer:
Realisation A/c
Explanation:
When the firm is being dissolved, realisation account is prepared to ascertain the profit made or loss incurred at the time of dissolution of the firm.