Target Exam

CUET

Subject

Part A

Chapter

Dissolution of Partnership Firm

Question:

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited:

Options:

Realisation Account

Partner's Capital Account

Partner's Loan Account

Revaluation Account

Correct Answer:

Partner's Capital Account

Explanation:

The correct answer is Option (2) → Partner's Capital Account

When the firm pays realisation expenses on behalf of a partner, it means the firm bears an expense that should have been borne by that partner. Hence, the partner becomes liable to the firm, and his capital account is debited.