Question
Accountancy Question on Accounting for Share and Debenture Capital
On dissolution of a firm, bank overdraft is transferred to
A
Bank Account
B
Realisation Account
C
Partners Capital Account
D
Partners Loan Account
Answer
Realisation Account
Explanation
Solution
On dissolution, all liabilities, including bank overdrafts, are transferred to the Realisation Account for settlement.
Hence, the correct answer is Option 2.