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.

Post-Dissolution Balance Sheet

The correct answer is option 4- Post-Dissolution Balance Sheet.

In the process of dissolving a partnership firm, the account/statement that is not required is Post-Dissolution Balance Sheet. Since a partnership ceases to exist after dissolution, it doesn't require a balance sheet to represent its financial position. The dissolution process aims to settle all claims and close the firm.

* Realisation Account: This account tracks the process of converting assets of the partnership into cash to settle liabilities and distribute remaining funds to partners. It reflects the profit or loss arising from the sale of assets.

* Partner's Capital Accounts: These accounts show the initial capital contributions, drawings, and final capital balances of each partner after considering their share of the dissolution process.

* Bank Account: This account remains relevant during dissolution. At the end bank account shows zero balance.