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Home Questions TBBS6V5YKW
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Match List I with List II.

List - I

List - II

 (A) Asset taken over by partner

 (I) Partner's capital A/c Dr
           To cash A/c

 (B) Realisation expenses

 (II) Partner's capital A/c Dr
            To realisation A/c

 (C) Liabilities met by partner

 (III) Realisation A/c Dr
             To partners capital A/c 

 (D) Realisation Expenses paid on behalf of partner by firm 

 (IV) Realisation A/c Dr
             To cash A/c 

Choose the correct answer from the options given below :

Options:

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

(A)-(II), (B)-(I), (C)-(III), (D)-(IV)

(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

Correct Answer:

(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

Explanation:

The correct answer is Option (4) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I)

* Asset taken over by partner- Partner's capital A/c Dr To realisation A/c. This journal entry shows that the partner capital account is debited with the asset amount.

* Realisation expenses- Realisation A/c Dr. To cash A/c. This journal entry shows that the realisation expenses are paid by the firm in cash.

* Liabilities met by partner- Realisation A/c Dr. To partners capital A/c. This journal entry shows that the partner has paid the liability due to which their capital account is credited with that liability amount.

* Realisation Expenses paid on behalf of partner by firm- Partner's capital A/c Dr. To cash A/c. This journal entry shows that the on behalf of partner, the firm had paid the realisation expenses due to which their account is debited with the amount of realisation expenses.

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