At the time of dissolution of partnership firm, the amount of "Bills Payable" shown in the liability side of Balance Sheet is transferred to :
Answer & explanation
Correct answer: option 1
All external liability accounts including provisions, if any, are closed by transferring them to the credit of Realisation account.
Liabilities (individually) Dr.
To Realisation A/c
Liabilities (individually) Dr.
To Realisation A/c