Practicing Success
On dissolution of a partnership firm, the partner's capital accounts are closed through which of the following account? |
Realisation Account Drawing Account Loan Account Bank Account |
Bank Account |
* If the partner’s capital account shows a debit balance after all adjustments, he brings in the necessary cash for which the entry will be: Thus, partner's capital account are closed through the bank account. It may be noted that the aggregate amount finally payable to the partners must equal to the amount available in bank and cash accounts. Thus, all accounts of a firm are closed in case of dissolution. |