Choose the correct sequence of Closing of Ledger Accounts at the time of dissolution of a Partnership Firm.

(A) Closing of Cash at Bank & Cash in hand account.

(B) Realisation of Assets and payment of external liabilities recorded in Realisation Account.

(C) Transfer of Assets and External Liabilities to Realisation Account.

(D) Closing Partner's capital account by settling the final payment to partners or receipt from partners.

Choose the correct answer from the options given below:

Question

Accepted Answer

(C), (B), (D), (A)

Answer

(C), (D), (B), (A)

Answer

(C), (D), (A), (B)

Answer

(C), (A), (B), (D)

	LIST-I		LIST-II
A.	For sale of assets	I.	No Journal Entry
B.	Transfer of assets to realisation account	II.	Bank A/c Dr. To Realisation A/c
C.	Creditors took machinery for full settlement of his claims	III.	Realisation A/c Dr. To Assets A/c
D.	Dissolution expenses paid	IV.	Realisation A/c Dr. To Bank A/c

Solution