Practicing Success
In case of dissolution of the firm, partner's capital account are closed through: |
Bank Account Realisation Account Capital Account Loan Account |
Bank Account |
The correct answer is Option (1) → 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. |