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mediumMCQCUET Accountancy 2023 11 June Shift 32026Accountancy
1 mark

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.

  1. A
    Transferring them to the Credit of Partner's Capital A/c
  2. B
    Transferring them to the Credit of Partner's Current A/c
  3. C
    Transferring them to the Credit of Realisation A/c
  4. D
    Transferring them to the Debit of Realisation A/c

Solution & Step-by-step Explanation

Provisions against assets (such as Provision for Doubtful Debts or Provision for Depreciation) are closed by transferring them to the credit side of the Realisation Account.

Practice this question

Try it yourself before checking the explanation above.

Select the way by which provisions appearing in the Balance Sheet of a partnership firm are closed at the time of firm's dissolution.
A
Transferring them to the Credit of Partner's Capital A/c
B
Transferring them to the Credit of Partner's Current A/c
C
Transferring them to the Credit of Realisation A/c
D
Transferring them to the Debit of Realisation A/c

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PartnershipDissolutionProvisions closing

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