Sita, Rita and Meeta are partners sharing profits and losses equally. On 31st March, 2022, they decided to dissolve the business. On that date, the Capital Account Balance were Sita-₹1,00,000; Rita-₹80,000 and Meeta-₹60,000. Creditors for ₹30,000 and Reserve Fund for ₹30,000 were also lying in the books of the firm while on Assets side, Sundry Assets were existing at ₹2,70,000. Sundry assets included patents for ₹20,000. The tangible assets were realised at 90% of the book value while creditors were settled at 110%. Realisation expenses were ₹10,000 paid by Sita. There was an unrecorded assets of ₹5,000 which was taken over by Meeta.
Answer question on the basis of above information.
Identify the account/statement which is not required in case of Dissolution of partnership firm.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Post-Dissolution Balance Sheet
On dissolution the books of the firm are closed: assets and outside liabilities go to the Realisation Account, cash moves through the Bank Account and the partners are settled through their Capital Accounts. Nothing is left after that, so no Balance Sheet is prepared after dissolution.
Option (1) Realisation A/c — Required. It finds the profit or loss on realisation.
Option (2) Partner’s Capital A/c — Required. It carries the share of profit or loss and settles each partner.
Option (3) Bank A/c — Required. It records the money received and paid; it closes with the final payment to partners.
NCERT (2026-27 edition): |