The Partnership Is Being Dissolved and Converted into a Company

Multiple Choice

The partnership is being dissolved and converted into a company. The realisation account after all the
Assets and liabilities were adjusted to their fair value and the consideration posted has a credit balance
Carried down of £10,000. Assuming there are two partners X and Y, sharing the profits and losses
Equally.
What is the double entry to clear the realisation account?

A) Dr. Realisation account £10,000 Cr. Current account X £5,000
Cr) Current account Y £5,000
B) Dr. Realisation account £10,000 Cr. Capital account X £5,000
Cr) Capital account Y £5,000
C) Dr. Current account X £5,000 Dr. Current account Y £5,000
Cr) Realisation account £10,000
D) Dr. Capital account X £5,000 Dr. Capital account Y £5,000
Cr) Realisation account £10,000