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Commerce · Q1382

Accounting

Graduate and Post Graduate · Commerce · question 1382

Q1382

Which of the following statement regarding the dissolution of a partnership firm is true:

A.
Only the assets of the firm can be used for the payment of the firm's liabilities
B.
Loss on realisation is transferred to partners, capital accounts in their capital ratio
C.
Any amount realised from the sale of an unrecorded asset is credited to the realisation account
Answer
D.
Partners loan to the firm is transferred to the realisation account with the liabilities of the firm

Answer: Option C

Solution

Answer: Option C
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