When and why is realisation account prepared?
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Solution and Explanation
Step 2: Purpose. - Records disposal of assets. - Records settlement of creditors, loans, and expenses. - Balancing figure shows profit/loss on realisation.
Final Answer: \[ \boxed{\text{Prepared at dissolution to ascertain profit/loss}} \] % Quciktip
Top Questions on Dissolution of Partnership Firm
- What journal entries would you pass for the following transactions on the dissolution of a firm of A and B?
(i) Dissolution expenses amounted to Rs. 500.
(ii) Unrecorded assets realised Rs. 2,500.
(iii) Stock worth Rs. 2,000 already transferred to Realisation A/c was taken over by partner A.
(iv) Creditors, already transferred to Realisation A/c, were paid Rs. 3,000.
(v) Profit on realisation Rs. 4,000 is to be distributed between A and B in the ratio of 3 : 1.- Bihar Board XII - 2025
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- On dissolution of the firm, Partners’ Capital Accounts are closed through:
- Bihar Board XII - 2025
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- If at the time of dissolution nothing is said about liabilities, then:
- Bihar Board XII - 2025
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Match List-I with List-II:\[\begin{array}{|c|c|} \hline \text{List-I} & \text{List-II} \\ \hline \text{(A) Payment of loans due to partners} & \text{(I) Realisation A/c Dr To Bank A/c} \\ \hline \text{(B) Settlement of partners' accounts (debit balance)} & \text{(II) Bank A/c Dr To Loan to Partners A/c} \\ \hline \text{(C) Settlement of loan by firm to a partner} & \text{(III) Bank A/c Dr To Partner's Capital A/c} \\ \hline \text{(D) Settlement of unrecorded liability} & \text{(IV) Partner's Loan A/c Dr To Bank A/c} \\ \hline \end{array}\]Choose the correct answer:
- CUET (UG) - 2025
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Match List-I with List-II:\[\begin{array}{|c|c|} \hline \text{List-I} & \text{List-II} \\ \hline \text{(A) Compulsory Dissolution} & \text{(I) Partner becomes insane} \\ \hline \text{(B) Dissolution by notice} & \text{(II) Death of a partner} \\ \hline \text{(C) Dissolution by Court} & \text{(III) Business becomes illegal} \\ \hline \text{(D) Dissolution on certain contingencies} & \text{(IV) Partnership at will} \\ \hline \end{array}\]Choose the correct answer from the options given below:
- CUET (UG) - 2025
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- Dissolution of Partnership Firm
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