Dissolution of Partnership Firm · Class 12 · CBSE · Commerce Accountancy
On dissolution of a partnership firm, which journal entry is passed for transferring an asset to the Realisation Account at its book value?
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-E4018C
On dissolution of a partnership firm, which journal entry is passed for transferring an asset to the Realisation Account at its book value?
- A.Realisation Account Dr. To Asset AccountCorrect answer
- B.Asset Account Dr. To Realisation Account
- C.Partner’s Capital Account Dr. To Asset Account
- D.Cash Account Dr. To Asset Account
Solution
At dissolution, all recorded assets are transferred to the debit of the Realisation Account at their book values. Therefore, the entry is Realisation Account Dr. To Asset Account.
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