CUET Accountancy PYQs

When realisation expenses are paid by the firm on behalf of a partner, which account will be debited:

A firm is dissolved compulsorily in the following cases:

(A) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract

(B) when the business of the firm becomes illegal

(C) when the business of the firm is earning a large amount of profit.

(D) when some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership

Choose the correct answer from the options given below:

At the time of the Dissolution of a Partnership Firm, which statement is not false :-