Muft Shiksha
Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
Class 12AccountancyDissolution of a Partnership FirmClosing the BusinessEasy
0 reads0 ratings0 helpful

Dissolution expenses are generally debited to which account?

Answer and explanation

Correct answer: Realisation Account

When dissolution expenses are borne by the firm, they are debited to the Realisation Account, while the Cash or Bank Account is credited for the payment. Therefore, Realisation Account is correct. Cash or Bank is not debited because it decreases when the payment is made. Exam tip: Record dissolution expenses on the debit side of the Realisation Account.

Related tags

Partnership AccountsDissolutionRealisation AccountClosing BusinessAccounting EntriesClosing The BusinessDissolution Of A Partnership FirmAccountancy
सुधार सुझाएँ / Earn

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

KEEP PRACTISING

10 more MCQs
  1. 1What is the process of permanently closing a partnership firm and ending its existence called?
  2. 2Which account is prepared at the time of dissolution of a firm to determine the profit or loss arising from the settlement of its assets and external liabilities?
  3. 3What is generally done with the assets of a partnership firm at the time of its dissolution?
  4. 4On dissolution of a partnership firm, from what are the external liabilities generally paid?
  5. 5To which account is the realisation profit transferred?
  6. 6To which account is the realisation loss transferred?
  7. 7What happens to the existence of the firm after dissolution?
  8. 8At the time of dissolution, if an asset is sold for ₹10,000, what amount will be credited to the Realisation Account?
  9. 9On dissolution of a firm, to whom is the final cash balance paid after settling outside liabilities and other amounts due?
  10. 10What is the main purpose of the Realisation Account at the time of dissolution of a partnership firm?
Found an issue? Help improve this questionMy reports and replies

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.