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Dissolution of Partnership Firm — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyDissolution of Partnership Firm2 Marks
Question
On dissolution, Bank overdraft is transferred to Realisation Account.
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Answer

This statement is True.
As a sundry liability of the business, bank overdraft is a liability of a firm and hence, it is transferred to Realisation Account at the time of dissolution and paid a third party Liability.

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