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easyMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

On the dissolution of a firm, creditors are transferred to:

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

Solution & Step-by-step Explanation

At the time of dissolution of a partnership firm, all outside liabilities (including creditors) are transferred to the credit side of the Realisation Account to close their books of accounts.The journal entry passed is:

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On the dissolution of a firm, creditors are transferred to:
A
Cash Account
B
Bank Account
C
Realisation Account
D
Partners Capital Account

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