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mediumMCQCUET Accountancy 2025 3 June Shift 22026Accountancy
1 mark

At the time of the Dissolution of a Partnership Firm, which statement is not false (i.e., true)?

  1. A
    The amount of Provision for Debtors is transferred to the Credit Side of the Realisation Account.
  2. B
    The amount of Provision for Debtors is transferred to the Debit Side of the Realisation Account.
  3. C
    The amount of Provision for Debtors is transferred to the Credit Side of the Bank Account.
  4. D
    The amount of Provision for Debtors is transferred to the Credit Side of the Capital Account.

Solution & Step-by-step Explanation

At the time of dissolution, assets are transferred to the debit side of the Realisation Account at their gross values, while any related provisions or reserves against those assets (like Provision for Bad & Doubtful Debts) are transferred to the credit side of the Realisation Account to close them.

Practice this question

Try it yourself before checking the explanation above.

At the time of the Dissolution of a Partnership Firm, which statement is not false (i.e., true)?
A
The amount of Provision for Debtors is transferred to the Credit Side of the Realisation Account.
B
The amount of Provision for Debtors is transferred to the Debit Side of the Realisation Account.
C
The amount of Provision for Debtors is transferred to the Credit Side of the Bank Account.
D
The amount of Provision for Debtors is transferred to the Credit Side of the Capital Account.

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