Question

Dissolution expenses are credited to \(\underline{\hspace{1cm}}\) account.

• A. Realisation
• B. Cash/Bank
• C. Capital
• D. Loan

Hint:

Dissolution expenses are credited to the Realisation account during liquidation.

Answer 1

The Correct Option is A

Step 1: Understand dissolution expenses.
Dissolution expenses are incurred when closing or liquidating a business, and they are credited to the Realisation account.

Step 2: Evaluate the options.
- Realisation: Correct answer, as dissolution expenses are credited here. - Cash/Bank: These are used for paying dissolution expenses, not for crediting. - Capital: Would not be credited with dissolution expenses. - Loan: Not applicable for dissolution expense crediting.

Step 3: Conclusion.
Hence, the correct account is Realisation.

Final Answer: \[ \boxed{Realisation} \]