Question

Asset taken over by a partner at the time of dissolution of a firm should be:
(a) Credited to Realization Account
(b) Credited to Partner's Capital Account
(c) Debited to Realization Account
(d) None of the above​

Answer 1

Answer:

any asset of the firm taken over by the partner is recorded on the debit side and liability taken over is recorded on the credit side. undistributed profit and reserves are recorded on the credit side and undistributed losses or fictitious assets are recorded on the debit side.