On dissolution of a partnership firm, if

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of a partnership firm, if a partner pays the firm’s liability which of the following account is debited?

Options:

Cash Account

Profit and Loss Account

Partner’s Capital Account

Realisation Account

Correct Answer:

Realisation Account

Explanation:

For a liability which a partner takes responsibility to discharge-
Realisation A/c Dr.
To Partner’s Capital A/c