Match List I with List II.
|
List - I |
List - II |
|
(A) Payment of loans due to partners |
(I) Realisation A/c Dr |
|
(B) For settlement of partners' accounts, in case |
(II) Bank A/c Dr |
|
(C) For settlement of loan by a firm to a partner |
(III) Bank A/c Dr |
|
(D) For settlement of any unrecorded liability |
(IV) Partner's Loan A/c Dr. |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)
On dissolution, each settlement is a cash entry through Bank; what changes is the account on the other side.
(A) Payment of loans due to partners — (IV) Partner’s Loan A/c Dr., To Bank A/c.
The firm owes the partner; paying him reduces the liability (loan account debited) and the bank balance.
(B) Partner’s capital account shows a debit balance — (III) Bank A/c Dr., To Partner’s Capital A/c.
The partner owes the firm and brings in cash, which closes his debit balance.
(C) Settlement of loan by a firm to a partner — (II) Bank A/c Dr., To Loan to Partners A/c.
Here the partner owes the loan to the firm; when he repays it, the firm’s asset (loan to partner) is closed.
(D) Settlement of any unrecorded liability — (I) Realisation A/c Dr., To Bank A/c.
A liability not in the books is a loss of the dissolution, so it is charged to Realisation Account when paid.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
|
