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
0 reads0 ratings0 helpful

What does it mean if all account balances become zero when the firm is closed?

Answer and explanation

Correct answer: All the firm’s accounts have been closed and the dissolution process is complete

Zero balances indicate that realization, partners’ capital and liability-related adjustments have been completed and the accounts have been closed. Therefore, they signal completion of the firm’s dissolution process. A zero balance does not mean that profit has increased; profit or loss is determined separately. Exam tip: at the end of dissolution, all relevant accounts are settled and closed.

Related tags

Partnership DissolutionClosing AccountsRealization AccountPartners CapitalAccounting BasicsClosing The BusinessDissolution Of A Partnership FirmAccountancy

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

Add Muft Shiksha to your Home Screen

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