Partnership

Dissolution

Easy

common

When a partnership firm is dissolved, final payment made to partners is transferred to

Realisation A/C

Partner's Loan A/C

Partner's Current A/C

Bank A/C

✅ Correct Option: 4

When a partnership firm is dissolved, the final settlement involves paying the remaining amount due to partners from their Capital Accounts.

The journal entry for final payment to partners is:

Partners' Capital A/c Dr.

To Bank A/c

The payment to partners is transferred to Bank A/c because cash or bank balance is paid out to settle their capital balances.

The sequence during dissolution is:

Realisation A/c → handles sale of assets and payment of liabilities

Profit/Loss on realisation → transferred to Partners' Capital A/c

Partners' Capital A/c → final balance paid through Bank A/c

Since Bank A/c is credited (cash goes out) when making the final payment to partners, the payment is transferred to Bank A/c.

The correct option is 4: Bank A/c

2025: 3 June Shift 1

Match List-I with List-II

List–I (Events)	List–II (Result)
(A) Termination of business.	(I) Not possible in dissolution of partnership.
(B) Continuation of Business	(II) Not possible in the dissolution of a firm.
(C) Intervention of court.	(III) Dissolution of firm
(D) Continuation of books of accounts.	(IV) Dissolution of partnership.

Choose the correct answer from the options given below:

2023: 28 May Shift 1

On Dissolution of partnership firm out of total debtors of Rs. 2,50,000, Rs. 10,000 became bad and the rest realised 70%. In the given case Bank A/c will be debited by :

2022: 20 Aug Shift 2

Raman and Naman were in partnership sharing profit and losses as 3 : 2. Their partnership firm was dissolved on 31 March 2022. On the date of dissolution, Naman's loan was Rs. 20,000. Naman agreed to take stock (already transferred to Realisation A/c) of Rs. 15,000 at Rs. 18,000 and balance in cash for the settlement of loan. Journal Entry for above transaction is:

2026: 12 May Shift 1

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

2026: 20 May Shift 1

At the time of the dissolution of a partnership firm in which X, Y and Z were partners sharing profit in 2:2:1 ratio, the following information was made available. Arrange them in the sequence in which they will be paid.

(A) A's Loan to the firm Rs 50,000

(B) Creditors Rs 2,00,000

(D) Balance available after settlement of all the stakeholders.

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

The amount recovered from the debtors is:

When a partnership firm is dissolved, final payment made to partners is transferred to

Solution

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