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Adjustments in Partner's Capital Accounts

Select the mo...

Question

Select the most appropriate alternative from those given below :

Assets and liabilities are transferred to Realisation Account at their ____________values.
a) market
b) purchase
c) sale
d) book

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Solution

Assets and liabilities are transferred to the Realisation Account at their book values.

Explanation: In order to determine the correct amount of profit or loss on the eve of dissolution of a partnership firm, all assets and liabilities are transferred to the Realisation Account at their book values.

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Q. Select the most appropriate alternative from those given below :

In case of dissolution assets and liabilities are transferred to _____________A/c.
a) Bank A/c
b) Partner’s capital A/c
c) Realisation A/c
d) Partner’s current A/c

Q. Select the most appropriate alternative from those given below :

Realisation Account is __________on realisation of assets.
a) debited
b) credited
c) deducted
d) None of these

Q. Select the most appropriate alternative from those given below :

If any unrecorded liability is paid on dissolution of the firm____________ account is debited.
a) Cash/Bank A/c
b) Realisation A/c
c) Partner’s Capital A/c
d) Loan A/c

Q. Select the most appropriate alternative from those given below :

Dissolution expenses are credited to _____________A/c.
a) Realisation A/c
b) Cash/Bank A/c
c) Partner’s Capital A/c
d) Partner’s Loan A/c

Q. Select the most appropriate alternative from those given below:
Gross Profit or Gross Loss is transferred to _______ Account.

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