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Questions and Answers
In the dissolution of a partnership firm, which account is opened to record the realization of assets?
In the dissolution of a partnership firm, which account is opened to record the realization of assets?
When transferring liabilities in the dissolution process, which account is credited for partners' capital?
When transferring liabilities in the dissolution process, which account is credited for partners' capital?
Which account is debited when transferring assets in the dissolution process?
Which account is debited when transferring assets in the dissolution process?
What is the effect when assets are taken over by a partner during dissolution?
What is the effect when assets are taken over by a partner during dissolution?
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In the dissolution process, which account is credited when expenses are paid?
In the dissolution process, which account is credited when expenses are paid?
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Study Notes
Dissolution of a Partnership Firm
- Realization Account is opened to record the realization of assets during the dissolution process.
- Partners' Capital Account is credited when transferring liabilities in the dissolution process.
- Realization Account is debited when transferring assets in the dissolution process.
- When assets are taken over by a partner during dissolution, it has a debit effect on the partner's Capital Account.
- Bank Account is credited when expenses are paid during the dissolution process.
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Description
Test your knowledge of the dissolution of a partnership firm with this quiz. Learn about the step-by-step process, including opening accounts, transferring assets and liabilities, making accounting adjustments, and closing accounts. Practice identifying the accounts to be opened and transferring assets and liabilities to the appropriate accounts.
