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On payment of expenses of dissolution, account will be debited :
Realisation Account
Cash Account
Profit & Loss Account
None of the Above
- Realisation Account: This account is debited with all expenses incurred during the dissolution of a firm. It captures all costs associated with realizing assets and settling liabilities. Correct Answer
- Cash Account: This account records cash transactions. It's credited when cash is received or debited when cash is paid. During dissolution, it records cash inflows and outflows but not directly about expenses of dissolution.
- Profit & Loss Account: This account is for normal business operations, showing overall profit or loss over an accounting period. It's not used directly for expenses related to dissolution proceedings.
- None of the Above: Since the Realisation Account is the correct answer, this option is incorrect in this context.
By: santosh ProfileResourcesReport error
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