CUET Preparation Today
Identify the account that is not required to prepare in case of Dissolution of partnership firm. |
Cash A/c Post-Dissolution Balance Sheet Partner's Current A/c Realisation A/c |
Post-Dissolution Balance Sheet |
The correct answer is option 2- Post-Dissolution Balance Sheet. In the process of dissolving a partnership firm, the account that is not required is Post-Dissolution Balance Sheet. Since a partnership ceases to exist after dissolution, it doesn't require a balance sheet to represent its financial position. The dissolution process aims to settle all claims and close the firm.
OTHER OPTIONS * Realisation Account: When the firm is dissolved, its books of account are to be closed and the profit or loss arising on realisation of its assets and discharge of liabilities is to be computed. For this purpose, a Realisation Account is prepared to ascertain the net effect (profit or loss) of realisation of assets and payment of liabilities which may be transferred to partner’s capital accounts in their profit sharing ratio. * Partner's Current Accounts: These accounts show partner's balance after all adjustments which are then transferred to capital account of partner to settle them. * Cash Account: This account is made lastly which shows zero balance. |
