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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
Realization loss is not transferred to insolvent partner’s Capital Account.
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Answer

This statement is False.
All partners of the firm are responsible for Loss on realization and hence loss on realization is supposed to be transferred to all Partners’ Capital Account, without any discrimination of solvent or insolvent.

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