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Shift 25/05/2023 8:30 AM - 10:30 AM
Correct Answer
A. Investment Fluctuation Reserve - This is not typically shown in the Realisation Account as it is related to fluctuations in the value of investments and not directly linked to the dissolution of the partnership.
B. Provision for Doubtful Debts - This is not shown in the Realisation Account either, as it's an accounting provision and does not directly impact the assets and liabilities during the dissolution.
C. General reserve appearing in the Balance Sheet - This is shown in the Realisation Account because it represents a reserve that needs to be distributed during the liquidation or dissolution of a partnership.
D. Asset taken over by a partner for settlement of dues - This is typically not part of the Realisation Account, as it's more about the settlement of individual partner accounts.
E. Dissolution expenses paid by one partner on behalf of the other partner - This is usually recorded in the Realisation Account as it represents expenses related to the dissolution process.
Given this analysis, the correct options are A, B, and D, so option 2 is the correct answer.
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