Question:
White, Shaun and Todd were partners in a firm sharing profits and losses equally. Shaun’s wife had advanced a loan of ₹ 1,00,000 to the firm. The firm was dissolved. Shaun’s wife’s loan had already been transferred to Realisation account. The account credited to discharge Shaun’s wife’s loan will be :
White, Shaun and Todd were partners in a firm sharing profits and losses equally. Shaun’s wife had advanced a loan of ₹ 1,00,000 to the firm. The firm was dissolved. Shaun’s wife’s loan had already been transferred to Realisation account. The account credited to discharge Shaun’s wife’s loan will be :
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In dissolution, when liabilities are settled, bank/cash account is credited and liability is debited.
Updated On: Jul 7, 2025
- Shaun’s capital account
- Bank account
- Realisation account
- Shaun’s loan account
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The Correct Option is B
Solution and Explanation
Shaun’s wife’s loan was already transferred to Realisation account.
To discharge it, the firm will pay her, and thus Bank account will be credited.
Bank is credited when cash goes out to pay liabilities. Final Answer: Bank account
To discharge it, the firm will pay her, and thus Bank account will be credited.
Bank is credited when cash goes out to pay liabilities. Final Answer: Bank account
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