Dissolution of Partnership Firm · Class 12 · CBSE · Commerce Accountancy
At the time of dissolution, a partner takes over machinery of the firm at an agreed value of ₹25,000. Which journal entry should be passed?
Practice question from Dissolution of Partnership Firm (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-5D72E3
At the time of dissolution, a partner takes over machinery of the firm at an agreed value of ₹25,000. Which journal entry should be passed?
- A.Realisation A/c Dr. ₹25,000; To Partner’s Capital A/c ₹25,000
- B.Partner’s Capital A/c Dr. ₹25,000; To Realisation A/c ₹25,000Correct answer
- C.Machinery A/c Dr. ₹25,000; To Partner’s Capital A/c ₹25,000
- D.Partner’s Capital A/c Dr. ₹25,000; To Machinery A/c ₹25,000
Solution
When a partner takes over an asset, the partner’s capital account is debited with the agreed value and the Realisation Account is credited.
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