Dissolution expenses are credited to _________A/c.

Question

Select the most appropriate alternative from those given below :

Dissolution expenses are credited to _________A/c.

Options

• Realisation A/c
• Cash/Bank A/c
• Partner’s Capital A/c
• Partner’s Loan A/c

Answer 1

Dissolution expenses are credited to Cash/Bank A/c.

Explanation: Payment of realisation expenses results in outflow of cash. Therefore, they are credited to Cash/Bank A/c (as these lead to decrease in cash balance).