Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
On dissolution of a firm, Bank overdraft is transferred to:
Options:
Bank A/c
Cash A/c
Realisation A/c
Partners" Capital Accounts
Correct Answer:
Realisation A/c
Explanation:
Bank Overdraft is a liability and hence it is transferred to Realisation account.