Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
Where it is agreed that a partner will be paid a lump sum amount for dissolution and the payment is made by the partnership firm, the payment is debited to:
Options:
Realisation A/c
Revaluation A/c
All partner's capital A/c
Concerned partner's capital A/c
Correct Answer:
Concerned partner's capital A/c
Explanation:
The lump sum amount paid is debited to concerned partners capital account,