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easyMCQCUET 2025 31 May Shift 12026CUET Accountancy
1 mark

On dissolution of the firm, partner's capital accounts are closed through:

  1. A
    Realisation Account
  2. B
    Drawings Account
  3. C
    Bank Account
  4. D
    Loan Account.

Solution & Step-by-step Explanation

In the concluding steps of a partnership firm's dissolution process, once all assets are realized and standard external liabilities are cleared through the Realisation Account, the surviving final cash balances are utilized to close the partners' capital balances. Any surplus is paid off or deficiency is brought in via the Bank Account (or Cash Account).

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On dissolution of the firm, partner's capital accounts are closed through:
A
Realisation Account
B
Drawings Account
C
Bank Account
D
Loan Account.

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