At the time of dissolution of partnership firm the amount of lsquo Bills Payable rsquo shown in the ...........

At the time of dissolution of partnership firm, the amount of ‘Bills Payable’ shown in the liability side of Balance Sheet is transferred to :

Capital Accounts of Partners

Realisation Account

Cash Account

Loan Account of Partners

छोटे Courses बड़े Results

Master

Prepare through Micro-courses

Try Now

Explanation:

- Capital Accounts of Partners: This account is used to record each partner's share of capital, profits, and losses. It does not typically handle liabilities like "Bills Payable" directly during dissolution.

- Realisation Account: ?? This account is used during the dissolution of a partnership. It helps calculate profits or losses from selling assets and paying off liabilities, including "Bills Payable."

- Cash Account: This account records all cash transactions. It is not used to directly transfer liabilities, but cash is eventually involved in settling amounts after using the Realisation Account.

- Loan Account of Partners: This account would record any loans given to or by partners. It is unrelated to settling firm liabilities like "Bills Payable."