- 1 Marks
Question
In partnership dissolution, what are the necessary accounting entries to record an asset taken over by a partner?
Answer
Dr. Partner’s Capital Account. Cr. Realisation Account.
Explanation:
The correct answer is Dr. Partner’s Capital Account, Cr. Realisation Account because when a partner takes over an asset, the capital account of the partner is debited, and the realisation account is credited with the asset value.
- Tags: Accounting Entries, Assets, Dissolution, Partnership
- Level: Level 1
- Uploader: Theophilus