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mediumMCQCUET Accountancy 2025 3 June Shift 22026Accountancy
1 mark

Which statement is NOT false (i.e., true), in respect of the dissolution of a partnership firm?

  1. A
    A partner took an unrecorded asset; it will be shown on the credit side of the Realisation Account.
  2. B
    A partner takes an unrecorded asset; it will be shown on the credit side of the partner's capital account.
  3. C
    A partner took a recorded liability; it will be shown on the credit side of the Realisation Account.
  4. D
    A partner took an unrecorded liability; it will be shown on the credit side of the Realisation Account.

Solution & Step-by-step Explanation

When a partner takes over an asset (whether recorded or unrecorded), the journal entry is:


This means the entry appears on the credit side of the Realisation Account. Hence, Statement A is correct.

Practice this question

Try it yourself before checking the explanation above.

Which statement is NOT false (i.e., true), in respect of the dissolution of a partnership firm?
A
A partner took an unrecorded asset; it will be shown on the credit side of the Realisation Account.
B
A partner takes an unrecorded asset; it will be shown on the credit side of the partner's capital account.
C
A partner took a recorded liability; it will be shown on the credit side of the Realisation Account.
D
A partner took an unrecorded liability; it will be shown on the credit side of the Realisation Account.

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