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Which is the correct journal entry for transferring realisation profit to capital accounts?

Answer and explanation

Correct answer: Debit realisation and credit partners' capital accounts

To close realisation profit realisation account is debited and partners' capital accounts are credited. Remember this profit transfer entry.

Related tags

DissolutionJournal EntryRealisation ProfitPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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