Match List-I with List-II
List-I List-II (A) Creditors are Paid by Firm at the time of dissolution of Partnership Firm in cash. (I) Realization Account Debited and Partner's Capital Account Credited. (B) Asset are taken over by a partner at the time of dissolution of Partnership Firm. (II) No Entry (C) Bills Payable are paid by giving Furnitures in full settlement. (III) Realization Account Debited and Cash Account Credited. (D) Unrecorded Liability taken over by a partner at the time of dissolution of a Partnership Firm. (IV) Partner's Capital Account Debited and Realization Account Credited.
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Creditors are Paid by Firm at the time of dissolution of Partnership Firm in cash. | (I) Realization Account Debited and Partner's Capital Account Credited. |
| (B) Asset are taken over by a partner at the time of dissolution of Partnership Firm. | (II) No Entry |
| (C) Bills Payable are paid by giving Furnitures in full settlement. | (III) Realization Account Debited and Cash Account Credited. |
| (D) Unrecorded Liability taken over by a partner at the time of dissolution of a Partnership Firm. | (IV) Partner's Capital Account Debited and Realization Account Credited. |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
(A) Cash payment to creditors is Realisation A/c Dr. To Cash A/c, so (III).
(B) An asset taken over by a partner is Partner's Capital A/c Dr. To Realisation A/c, so (IV).
(C) A liability settled by giving an asset needs no entry, since both are already in Realisation A/c, so (II).
(D) An unrecorded liability taken over by a partner is Realisation A/c Dr. To Partner's Capital A/c, so (I).
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