The correct answer is Option (4) → (C), (B), (D), (A)
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(C) Transferring of assets and liabilities in realization account: This is the first step. All assets (excluding cash/bank) and all external liabilities are transferred to the Realisation Account to ascertain the profit or loss on the realization process.
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(B) Realizing assets and payments of liabilities: After transfer, the assets are sold for cash (realized), and the cash proceeds are used to pay off the external liabilities. These transactions are recorded in the Realisation Account.
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(D) Preparation of capital account of partners: After the Realisation Account is closed (transferring the final profit or loss to the partners' Capital Accounts), and any partner loans/current accounts are settled, the partners' final balances due or payable are calculated in their Capital Accounts.
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(A) Preparing a Bank account: This is the final step. The Bank Account is prepared to show all cash inflows (realization proceeds, money brought in by partners) and all cash outflows (payment of liabilities, realization expenses, payment to partners' loan accounts). It serves as the final proof that the entire dissolution process is complete, as the total debits should exactly match the total credits, and the remaining balance is paid out to the partners as calculated in step (D).
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