Partnership

Dissolution

Medium

On dissolution of a firm, bank overdraft is transferred to:

Bank Account

Realisation Account

Partners' Capital Account

Partners' Loan Account

✅ Correct Option: 2

On dissolution of a firm, all assets and liabilities are settled. A bank overdraft is a liability.

Bank overdraft → Realisation Account

This account is used to record all assets sold and liabilities paid off during dissolution.

After settling the overdraft, any remaining balance affects the partners' accounts.

2025: 30 May Shift 1

Which item among the following is NOT listed on the credit side of a Realization Account?

2025: 16 May Shift 1

Bank A/c is credited by the Realisation A/c by _______ amount in total.

2026: 29 May Shift 1

Arrange the following in the correct sequence, in which the assets of the firm shall be applied, including any sum contributed by the partners to make up deficiencies in the case of dissolution of a partnership firm.

(A) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e. partner's loan).

(B) In paying the debts of the firm to the third parties.

(D) In paying to each partner proportionately what is due to him on account of capital.

Choose the correct answer from the options given below:

2026: 12 May Shift 1

The dissolution of partnership cannot take place by which of the following way:

2025: 3 June Shift 1

On dissolution of a partnership firm, the bills payable is transferred to :

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) At the time of dissolution, unrecorded assets when taken over by a partner are shown in	(I) Debit of Realisation Account
(B) At the time of dissolution, unrecorded liabilities when paid are shown in	(II) Credit of Partners' capital Account
(C) At the time of admission of a partner, General Reserve will be shown in	(III) Debit of Partners' capital Account
(D) At the time of admission of a partner, Debit balance of Profit & Loss A/c will be shown in	(IV) Credit of Realisation Account

Choose the correct answer from the options given below:

On dissolution of a firm, bank overdraft is transferred to:

Solution

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