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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

Partner's current accounts are transferred to the respective partners' ________ at the time of dissolution of a partnership.

  1. A
    Capital account
  2. B
    Loan account
  3. C
    Drawings account
  4. D
    No transfer of current accounts

Solution & Step-by-step Explanation

At the time of a firm's final dissolution, all running secondary accounts like Partner's Current Accounts are closed off entirely by shifting their net final balances (debit or credit) directly into the respective Partner's Capital Account before winding up the cash settlement.

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Partner's current accounts are transferred to the respective partners' ________ at the time of dissolution of a partnership.
A
Capital account
B
Loan account
C
Drawings account
D
No transfer of current accounts

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