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easyMCQCUET Accountancy 2025 3 June Shift 22026Accountancy
1 mark

At the time of dissolution, if an asset is taken over by a partner, what journal entry will be recorded in the books of the firm?

  1. A
    Partner's Capital A/c Dr. To Realisation A/c
  2. B
    Partner's Capital A/c Dr. To Assets A/c
  3. C
    Bank A/c Dr. To Realisation A/c
  4. D
    Bank A/c Dr. To Assets A/c

Solution & Step-by-step Explanation

When a partner takes over a firm's asset during dissolution, the partner's capital balance is reduced (debited) and the value is credited to the Realisation Account (since all assets were already closed into Realisation).

Practice this question

Try it yourself before checking the explanation above.

At the time of dissolution, if an asset is taken over by a partner, what journal entry will be recorded in the books of the firm?
A
Partner's Capital A/c Dr. To Realisation A/c
B
Partner's Capital A/c Dr. To Assets A/c
C
Bank A/c Dr. To Realisation A/c
D
Bank A/c Dr. To Assets A/c

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PartnershipDissolutionAsset Takeover Entry

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