The ledger account that is not typically necessary for closing the books of a discontinuing company is:
b. Personal accounts of directors
The other accounts—Sundry members account, Realization account, and Bank account—are generally necessary in the process of winding up a company's financial activities. Each serves a specific purpose in settling the company's affairs:
- Sundry members account handles transactions related to members.
- Realization account handles the sale of assets and payment of liabilities.
- Bank account records the cash transactions during liquidation.
Personal accounts of directors are generally not part of the standard closing process unless there are specific transactions that need to be settled with them.
To close the books of a discontinuing company, the following ledger accounts are necessary, except one........
a.
Sundry members account.
b.
Personal accounts of directors
c.
Realization account.
d.
Bank account.
1 answer
1 answer