Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

On payment of expenses of dissolution, which of the following account will be debited?

Options:

Realisation Account

Cash account

Partner's Capital Account

None of the above

Correct Answer:

Realisation Account

Explanation:

The correct answer is option 1- Realisation Account.

When some expenses are incurred and paid by the firm in the process of realisation of assets and payment of liabilities:
Realisation A/c Dr.
   To Bank A/c

Thus, realisation account is debited.