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Question
At the time of dissolution of partnership the main account to be looked would be _______.
At the time of dissolution of partnership the main account to be looked would be _______.
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Solution
The correct option is D Realisation
On dissolution of a firm, all the books of account are closed, all assets are sold and all liabilities are paid off . In order to record the sale of assets and discharge of liabilities , a nominal account is opened named realisation account . The main purpose to open this account is to ascertain the profit and loss due to the realisation of assets and liabilities.
On dissolution of a firm, all the books of account are closed, all assets are sold and all liabilities are paid off . In order to record the sale of assets and discharge of liabilities , a nominal account is opened named realisation account . The main purpose to open this account is to ascertain the profit and loss due to the realisation of assets and liabilities.
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