Question : At the time of dissolution of partnership firm, contingency reserve is
Option 1: Debited to Partners' Capital A/cs
Option 2: Credited to partners' Capital A/cs
Option 3: Debited to Realisation Alc
Option 4: Credited to Cash A/C
Answer (1)
20th Jan, 2024
Correct Answer: Credited to partners' Capital A/cs
Solution : Contingency reserve is a normal reserve which will be credited to Partner's Capital Account. Hence, the correct option is 2.
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