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JAMB Principles of Accounts 2001 Question 36

Question 36

Partnership Admission, Retirement and Dissolution

On the dissolution of a partnership business, the net book value of the assets is transferred to

  1. A.debit of realization account
  2. B.credit of realization account
  3. C.credit of bank account
  4. D.debit of bank account.
Show the answer and explanation

Answer: A (debit of realization account)

Explanation

Assets are transferred to the debit of the realisation account; what they fetch is credited to it.