Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of a firm, a partner took over ₹17,000 investments for ₹14,000. Which one of the following account will be debited/credited with how much amount?

Options:

Partner's Capital Account Credit with ₹17,000

Realisation Account Credit with ₹17,000

Partner's Capital Account Credit with ₹17,000

Partner's Capital Account Debit with ₹14,000

Correct Answer:

Partner's Capital Account Debit with ₹14,000

Explanation:

For an asset taken over by a partner, journal entry will be:
Partner’s Capital A/c Dr. 14,000
      To Realisation A/c 14,000