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easyMCQCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026Accountancy
1 mark

On dissolution of a firm, bank overdraft is transferred to:

  1. A
    Bank Account
  2. B
    Realisation Account
  3. C
    Partners’ Capital Account
  4. D
    Partners’ Loan Account

Solution & Step-by-step Explanation

At the time of dissolution, all outside liabilities and third-party obligations, including a bank overdraft, are closed out by transferring them to the credit side of the Realisation Account.

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On dissolution of a firm, bank overdraft is transferred to:
A
Bank Account
B
Realisation Account
C
Partners’ Capital Account
D
Partners’ Loan Account

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