Which of the following is transferred to Realisation Account at the time of dissolution of partnership firm? |
Reserves Amount realized on the sale of assets Debit Balance of Profit & loss Account Credit Balance of Profit & Loss Account |
Amount realized on the sale of assets |
The correct answer is option 2- Amount realized on the sale of assets. Sale of assets credited to realisation account. Journal entry made for this- Bank A/c Dr. To Realisation A/c. All other options are transferred to partners capital A/c as they are accumulated profits and losses. |