Understanding Partnership Dissolution

Partner’s current accounts are transferred to respective ———————— Partners’ (Loan/Capital) Accounts.

Partner’s loan is —————— (transfered/not transfered) in the (Realisation Account).

When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is debited to_________ (Realisation/Capital) Account and Credited to__________ (Capital/Bank) Account

When creditor accepts an asset whose value is much more than the amount due to him, he will ———————— (pay/not pay) the excess amount which will be credited ———————— Account.

No entry is required when a ——————— (partner/creditor) accepts a fixed asset in payment of his dues.

. If a partner takes over an asset, such (Partner’s Capital Account) is ———————— (debited/credited).

If a liability is assumed by a partner, such Partner’s Capital Account is ––––––– ——— (debited/credited).

Accumulated losses are transferred to ————— (Realisation/Capital Accounts) in —————— (equal ratio/profit sharing ratio).

All ————— (internal/external) liabilities are transferred to the ————— (Debit/Credit) side of ——————acccount (Bank/Realisation).

All assets (except cash/bank and fictitious assets) are transferred to the ————— (Debit/Credit) side of ——————— Account (Realisation/Capital)