Choose the correct statement/ statements related to the dissolution of the firm from the following.
(A) Accumulated profits and reserves are transferred to realisation account.
(B) On dissolution of the firm, the partner's capital accounts are closed through realisation account.
(C) After transferring liabilities like creditors and bills payables to the realisation account, in the absence of any information regarding their payment, such liabilities are treated as never paid
(D) Partner's loan account is not transferred to realisation account.
Choose the correct answer from the options given below:
Choose the correct statement/ statements related to the dissolution of the firm from the following.
(A) Accumulated profits and reserves are transferred to realisation account.
(B) On dissolution of the firm, the partner's capital accounts are closed through realisation account.
(C) After transferring liabilities like creditors and bills payables to the realisation account, in the absence of any information regarding their payment, such liabilities are treated as never paid
(D) Partner's loan account is not transferred to realisation account.
Choose the correct answer from the options given below:
Solution
Only (D) is correct, as a partner's loan is paid separately and never routed through Realisation A/c. Accumulated profits and reserves go directly to partners' capital accounts, capital accounts are closed through Cash or Bank, and liabilities transferred to Realisation A/c are presumed paid at book value when no information is given.
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