Partnership

Dissolution

Easy

common

On dissolution of the firm, Partners Capital Account are closed through:

Realisation A/c

Balance carried forward

Bank A/c

Partners' Current A/c

✅ Correct Option: 3

After transferring reserves, revaluation profit or loss on realisation and drawings, the final balance of each Partner's Capital A/c is settled in cash. A credit balance is paid off and a debit balance is brought in, so the account closes through the Bank or Cash A/c.

2025: 14 May Shift 2

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

2025: 22 May Shift 2

In case of dissolution Machine costing Rs 20,000, alongwith cash of Rs 5,000 were given to creditors of Rs 30,000 in full settlement of their claim.

In this case Realisation A/c will be Debited with ………….

2022: 23 Aug Shift 2

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

2023: 20 June Shift 2

Unrecorded assets when taken over by a partner on dissolution are shown in:

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Business has become illegal	I.	Dissolution by Court
B.	When a partner is guilty of misconduct	II.	Compulsory dissolution
C.	Firm is dissolved with the consent of all the partners	III.	Dissolution by Agreement
D.	Death of a partner	IV.	Firm dissolution on the happening of certain contingencies

Choose the correct answer from the options given below:

2024

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

On dissolution of the firm, Partners Capital Account are closed through:

Solution

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