HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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On Dissolution, the Cash Or Bank Account is Closed Automatically. - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

On dissolution, the cash or bank account is closed automatically.

Solution

True
Explanation: On dissolution, the Cash or Bank Account is closed automatically because if the capital accounts show any balance, then such balance is transferred to the Cash or Bank Account. This is done so that both the sides of the Cash or the Bank Account show the same balance. This is because of the double-entry system of book-keeping.
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APPEARS IN

 2013-2014 (October) (with solutions)
Question 1.4.4 | 1.00 mark
Solution On Dissolution, the Cash Or Bank Account is Closed Automatically. Concept: Dissolution of Partnership Firm.
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