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WAEC Accounting 2018 Objective — Question 42

Question 42 of 50 from the West African Examinations Council (WAEC) Accounting 2018 Objective paper, with the correct answer and a full explanation.

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The accounting entries for cash realized from the sale of assets on dissolution of partnership can be

  • A. debit Cash Account, credit Partners' Account
  • B. debit Cash Account, credit Realisation Account
  • C. debit Cash Account, credit Realisation AccountCorrect
  • D. debit Realisation Account, credit Cash Account

Explanation

On realising assets for cash during dissolution, the entry is to debit the Cash Account and credit the Realisation Account.

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