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Realisation of Assets (Dissolution)

Rent paid to ...

Question

Rent paid to Ram (landlord), it should be credited to __________.

A

Rent A/c

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B

Ram

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C

Landlord A/c

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D

Cash A/c

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Solution

The correct option is A Ram
The accounting entry will be :
Rent A/c Dr.
To Ram A/c
(Being rent paid to ram)
Here Rent paid will be credited in Ram's account.

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Realisation of Assets (Dissolution)

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