Professional Documents
Culture Documents
Loan to Partner is adjusted through Realisation A/c ...Dr. After Passing the entries, Bank Account
Cash or Bank A/c: To Goodwill A/c Should not have balance
Cash or Bank A/c ...Dr.
To Loan to Partner A/c
Realisation A/c ...Dr. Cash/Bank A/c ...Dr. No Entry Concerned PC A/c ...Dr.
To Cash/Bank A/c To Realisation A/c To Realisation A/c
(at agreed value)
Abbreviations Used:
PC—Partner’s Capital; DRE—Deferred Revenue Expenditure
ACCOUNTING TREATMENT ON DISSOLUTION OF FIRM (LIABILITIES SIDE)