Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Which of the following is transferred to Realisation Account at the time of dissolution of partnership firm?

Options:

Reserves

Amount realized on the sale of assets

Debit Balance of Profit & loss Account

Credit Balance of Profit & Loss Account

Correct Answer:

Amount realized on the sale of assets

Explanation:

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.