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Home Questions Z4HE9MYSBZ
Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Match the following list 1 with list 2 regarding the dissolution process of partnership firm.

LIST 1 LIST 2
1) Realisation A/c a) 1st Step
2) Partner's loan A/c b) 2nd step
3) Partner's Capital A/c c) 3rd step
4) Bank A/c d) 4th step
Options:

1) a, 2) b, 3) c, 4) d

1) b, 2) a, 3) d, 4) c

1) d, 2) c, 3) b, 4) a

1) b, 2) c, 3) d, 4) a

Correct Answer:

1) a, 2) b, 3) c, 4) d

Explanation:
LIST 1 LIST 2
1) Realisation A/c a) 1st Step
2) Partner's loan A/c b) 2nd step
3) Partner's Capital A/c c) 3rd step
4) Bank A/c d) 4th step

 

First of all, realization account is prepared to realize the assets and liabilities. After the realisation of assets partner's loan is settled so the partner's loan is made at the second number. After partner's loan account partner's capital account is settled so their capital account is made. At last bank or cash account is made. No balance is left in cash or bank account as all the claims of the firm are settled.

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