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easyMCQCUET Accountancy 2025 14 May Shift 22026Accountancy
1 mark

On the ultimate dissolution of a partnership firm, partners' capital accounts are closed finally through which account?

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

Solution & Step-by-step Explanation

During the dissolution process:Assets and liabilities are transferred to and settled through the Realisation Account.Any profit or loss from realization is transferred to the partners' capital accounts.Finally, the remaining balances in the partners' capital accounts are closed by making final payments to partners or bringing in deficiencies via the Bank Account (or Cash Account).

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On the ultimate dissolution of a partnership firm, partners' capital accounts are closed finally through which account?
A
Realisation Account
B
Drawings Account
C
Bank Account
D
Loan Account

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