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In which account are the expenses incurred on the dissolution of a partnership firm recorded?

Answer and explanation

Correct answer: वसूली खाते (Realisation Account) में

Expenses incurred during dissolution are debited to the Realisation Account because this account determines the profit or loss arising from the realisation of assets and settlement of liabilities. They are not normally recorded in the Profit and Loss Account. Exam tip: realisation of assets, settlement of liabilities and dissolution expenses are the main items recorded in the Realisation Account.

Related tags

AccountancyPartnership DissolutionRealisation AccountDissolution ExpensesClass 12Dissolution Of A Partnership FirmClass 12 Mcq

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