Match List-I with List-II.
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List-I |
List-II |
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(A) Settlement of Partners Loan |
(I) Credit side of Realization A/c |
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(B) Transfer of liabilities |
(II) Partner's Capital will be credited |
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(C) Transfer of Assets |
(III) Credit Side of Bank A/c |
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(D) Remuneration payable to partner |
(IV) Debit Side of Realization A/c |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
On dissolution, assets and outside liabilities pass through the Realisation Account, while dealings with partners go through their own accounts and the bank.
(A) Settlement of Partners Loan — this matches (III) Credit Side of Bank A/c. A partner’s loan is not transferred to Realisation; it is paid directly from the bank (Partner’s Loan A/c Dr. To Bank A/c).
(B) Transfer of liabilities — this matches (I) Credit side of Realization A/c. External liabilities are closed by transfer to the credit of Realisation Account.
(C) Transfer of Assets — this matches (IV) Debit Side of Realization A/c. Assets other than cash and bank are closed by transfer to the debit of Realisation Account at book value.
(D) Remuneration payable to partner — this matches (II) Partner’s Capital will be credited. The firm owes it to the partner, so his capital account is credited (Realisation A/c Dr. To Partner’s Capital A/c).
NCERT (2026-27 edition):
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