In case of dissolution of partnership firm, any liability assumed/paid by a partner is shown on ________? - Accountancy MCQ CUET Accountancy 2025 24 May Shift 1 2026 | ExamTest.live | ExamTest.live

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In case of dissolution of partnership firm, any liability assumed/paid by a partner is shown on ________?

A $Debit of Realisation Account$
B $Debit of Bank Account$
C $Credit of Realisation Account$
D $Credit of Bank Account$

Solution & Step-by-step Explanation

When a partner takes over or pays off a liability of the firm during dissolution, the journal entry passed is: Realisation A/c Dr. To Partner’s Capital A/c Hence, it is recorded on the debit side of the Realisation Account.

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In case of dissolution of partnership firm, any liability assumed/paid by a partner is shown on ________?

A

Debit of Realisation Account

B

Debit of Bank Account

C

Credit of Realisation Account

D

Credit of Bank Account

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Partnership Dissolution

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