Cash balance shown in the Balance Sheet is shown on dissolution of firm in ........

Cash balance shown in the Balance Sheet is shown on dissolution of firm in :

Realisation Account

Cash Account

Capital Account

None of the Account

- Option 1: Realisation Account

- This is used to realize the assets or settle liabilities when dissolving a firm.

- It accounts for gains or losses from disposing of assets.

- Option 2: Cash Account

- This is used for presenting cash transactions of the firm.

- On dissolution, this account shows all cash receipts and payments, including the distribution of cash.

- Correct Answer

- Option 3: Capital Account

- Used to account for the capital contributions and withdrawals by partners.

- On dissolution, it helps in settling partner accounts but doesn't directly show cash balance.

- Option 4: None of the Account

- This suggests none of the provided accounts is used, which is incorrect.

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