Realisation A/c
Reserve A/c
Revalution A/c
Partner's Capital A/c
Answer is Right!
Answer is Wrong!
The correct answer is D. Partner’s Capital A/c.
On dissolution of a partnership firm, the debit balance of profit and loss account is transferred to the partners’ capital accounts in the ratio of their profit sharing ratio. This is because the debit balance of profit and loss account represents the accumulated losses of the firm, which must be borne by the partners.
The other options are incorrect because:
- Option A, Realisation Account, is used to record the assets and liabilities of the firm at the time of dissolution.
- Option B, Reserve Account, is a type of account that is used to record retained earnings.
- Option C, Revaluation Account, is used to record the revaluation of assets and liabilities at the time of dissolution.
I hope this helps!