Question

On dissolution of a firm, a partner paid ₹ 700 for the firm's realisation expenses. Which account will be debited?

Options

• Cash Account

• Realisation Account

• Capital Account of the Partner

• Profit and Loss Account

Answer 1

Realisation Account

Explanation:

When a partner pays for the firm's realisation expenses, the Realisation Account is debited and the Partner's Capital Account is credited.