Question

23. On dissolution, the balance of 'Profit & Loss Account appearing on
the assets side of a Balance Sheet is transferred to:
(A) On the debit of Realisation Account
(B) On the credit of Realisation Account
(C) On the debit of Partner's Capital Accounts
(D) On the credit of Partner's Capital Accounts
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Answer 1

Answer:

C) on the debit of partner's capital accounts

Explanation:

this is because, profit and loss account showing debit balance and thus, it's display in the assets side of balance sheet is a loss. Loss is usually debited to partner's capital accounts

hope my answer helps