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Home Questions N4KGFWZ48R
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Match the following:

List 1 List 2
a) Loss on realisation i) Debit partner's capital A/c
b) Profit on realisation ii) Credit realisation A/c
c) Asset sold iii) Credit partner's capital A/c
d) Creditors paid iv) Debit realisation A/c
Options:

a (ii), b (iii), c (i), d (iv)

a (i), b (iii), c (ii), d (iv)

a (i), b (ii), c (iii), d (iv)

a (i), b (iv), c (ii), d (iii)

Correct Answer:

a (i), b (iii), c (ii), d (iv)

Explanation:

* For transfer of profit and loss on realisation-
(a) In case of profit on realisation
   Realisation A/c Dr.
       To Partners’ Capital A/c (individually) A/c
(b) In case of loss on realisation
   Partners’ Capital A/c (individually) Dr.
           To Realisation A/c

* For sale of assets-
   Bank A/c Dr.
        To Realisation A/c

*  For payment of liabilities i.e. creditors-
      Realisation A/c Dr.
         To Bank A/c

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