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JAMB Principles of Accounts 2011 Question 34

Question 34

Partnership Admission, Retirement and Dissolution

The transactions relating to liquidation in partnership account is drawn by using

  1. A.current account
  2. B.cash account
  3. C.capital account
  4. D.realization account.
Show the answer and explanation

Answer: D (realization account.)

Explanation

The realisation account collects the assets sold, the expenses and the amounts received, and shows the profit or loss on dissolution.