In a piecemeal distribution of cash during the dissolution of a partnership firm, which method is typically used?
A. Both B and C
B. Maximum Loss Method
C. Surplus Capital Method
D. Proportionate Capital Method
Answer: Option A
Solution (By JKSSB Mock Tests)
When cash is realized in installments during dissolution, it is distributed using either the Maximum Loss Method or the Surplus Capital (Proportionate Capital) Method to ensure partners' capital accounts are correctly adjusted.
Explanation:
Depreciation is a non-cash transaction and does not involve a source document like invoice; it's recorded via journal voucher but is not an external voucher. But the term 'non-voucher' might refer to transactions without a supporting document. Depreciation entry has no source document, so it's often a journal entry. The question is ambiguous but likely pointing to depreciation as a non-cash transaction without physical voucher. Answer A.
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