Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closedat the time of firm's dissolution.( – Answer & Explanation | CUET Subject PYQ – Dubuddy

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed
at the time of firm's dissolution.
(

This question was previously asked in

Shift 11/06/2023 3:30 PM - 6:30 PM

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A
Transferring them to the Credit of Partner's Capital A/c
B
Transferring them to the Credit of Partner's Current A/c
C
Transferring them to the Credit of Realisation A/c
D
Transferring them to the Debit of Realisation A/c
Correct answer

Correct Answer

Transferring them to the Credit of Realisation A/c
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Detailed Explanation

When a partnership firm is dissolved, the provisions appearing in the Balance Sheet of the partnership firm are typically closed by transferring them to the credit of the "Realisation Account." This is done to account for the realization of assets and the settlement of liabilities during the dissolution process.

So, the correct option is:

(3) Transferring them to the Credit of Realisation A/c

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