Question on: JAMB Accounting - 2023
Accounting entry for dissolution expenses is
A
Dr : Partnership account ;Cr: Realization account
B
Dr: Revaluation account; Cr: Partnership account
C
Dr: Realization account; Cr: Cash account
D
Dr: Partners current account; Cr: Realization account
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Correct Option: C
Dissolution expenses are the costs incurred in the process of dissolving a partnership. These expenses are typically paid in cash, and therefore, the accounting entry for dissolution expenses involves debiting the Realization account (to record the expenses) and crediting the Cash account (to reflect the cash outflow).
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