CUET CUET Accountancy 2024 - On dissolution of a firm, bank overdraft is transferred to: | PYQs + Solutions | AfterBoards
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CUET Accountancy 2024

Accountancy
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Retirement/Death of a Partner

Medium

On dissolution of a firm, bank overdraft is transferred to:

Correct Option: 1,2
On dissolution of a firm, all assets and liabilities are settled. A bank overdraft is a liability.
Bank overdraft → Realisation Account
This account is used to record all assets sold and liabilities paid off during dissolution.
After settling the overdraft, any remaining balance affects the partners' accounts.
Realisation Account → Partners' Capital Account
This shows how much each partner gets or owes after all transactions.
In summary, the bank overdraft is transferred to the Realisation Account first, then impacts the Partners' Capital Account. Hence, options 1 and 2, both were awarded marks.

Related questions:

CUET Accountancy 2024

A, B and C are partners sharing profits in the ratio of 3:2:1. C died on 1st July, 2023. On this date, final accounts were prepared to ascertain profits for the period. It resulted in a profit of ₹ 1,75,000 to the firm. To give effect to the above:

CUET Accountancy 2024

The Deceased Partner's Capital Account includes the following amount/balances:

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