Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

What is the requirement regarding the closure of books in Dissolution of Partnership?

Options:

Books of account are reassess

Books of account remain open

Books of account are revalued

Books of account are closed

Correct Answer:

Books of account are closed

Explanation:

In the dissolution of a partnership, it is necessary to close the books of account. Closing the books of account means finalizing the financial records and bringing them to a conclusion. This is done to finalize the financial affairs of the partnership, determine the partners' respective shares, and comply with legal and regulatory requirements.