Question

On firm's dissolution when Partner voluntarily gives his personal assets to firms' creditor as payment, the account credited will be

            (A) Realisation account                    (B)partners capital account

            (C) cash account                                 (D) none of the account

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Answer 1

Answer:

Explanation:

In case of dissolution, assets and liabilities are transferred to Realisation A/c. Explanation: All the assets (except cash or bank balances) are transferred to the debit side, whereas all the liabilities (except bank overdraft) are transferred to the credit side of Realisation Account.