Question

The share capital, to the extent already held by the purchasing company, is closed by

the vendor company by crediting it to which account ​

Answer 1

Answer:

the shared capital to the extent already held bu the purchasing company

Answer 2

Answer:

The correct answer of this question is Realisation account.

Explanation:

Given - The share capital, to the extent already held by the purchasing company.

To Find - Write about the share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to which account ​.

The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to Realisation account.

To keep track of the sale of these assets and the payment of liabilities, a nominal account called the Realisation account is established. This account aids in determining the firm's profit or loss as a result of the realisation of assets and liabilities at the time of company closure.

An account formed upon the breakup of a partnership business is known as a realisation account. Calculating profit or loss on the dissolution of a partnership business is the purpose of creating a realisation account. In this account, the transactions pertaining to the realisation of assets and the payment of obligations are documented.

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