Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On dissolution of a partnership firm, an unrecorded computer of ₹5000 was taken by a partner for ₹4300 against payment. Which account will be credited and by how much amount?

Options:

Realisation Account by ₹4300

Partner’s Capital Account by ₹5000

Cash Account by ₹4300

Realisation Account by ₹700

Correct Answer:

Realisation Account by ₹4300

Explanation:

For an asset taken over by a partner-
Partner’s Capital A/c Dr.
   To Realisation A/c
 ( With the amount assets taken over by partner)