On dissolution the balance of a partner rsquo s capital account appearing on the assets side of a ba...........

On dissolution, the balance of a partner’s capital account appearing on the assets side of a balance sheet is transferred to :

On the Debit of Realisation Account

On the Credit of Realisation Account

On the Debit of Partner’s Capital Account

On the Credit of Cash Account

छोटे Courses बड़े Results

Master

Prepare through Micro-courses

Try Now

Explanation:

- On the Debit of Realisation Account: The realisation account handles items related to the disposal of assets and settlement of liabilities during dissolution. Partner’s capital account balances aren't typically related to realization.

- On the Credit of Realisation Account: Similarly, the credit side of the realisation account is for recording gains or receipts from selling assets.

- On the Debit of Partner’s Capital Account: A partner's capital balance appearing on the asset side indicates a debit balance (deficit). This balance would correct the capital account by debiting it.

- On the Credit of Cash Account: This is for recording cash inflows, not related to settling partner capital balances.

Correct Answer: On the Debit of Partner’s Capital Account