Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

A and B Partners were sharing profit & loss in the ratio 3:1. At the time of dissolution, Loss on Realisation A/c of ₹6,000 was discovered. How will it be treated to partner's capital A/c?

Options:

A's Capital A/C Dr. 4,500
B's Capital A/C Dr. 1,500
     To Realisation A/C  6,000
(Loss distributed)

Realisation A/C Dr. 6,000
   To A's Capital A/C  4,500
   To B's Capital A/C  1,500
(Loss distributed)

Partner's Capital A/c Dr - 6,000
   To Realisation A/C - 6000
(Loss distributed)

Realisation A/C Dr 6000
   To Partner's Capital A/c  6,000
(Loss distributed)

Correct Answer:

A's Capital A/C Dr. 4,500
B's Capital A/C Dr. 1,500
     To Realisation A/C  6,000
(Loss distributed)

Explanation:

6,000 * 3/4= 45,00
6,000 * 1/4 = 15,00
Debited to Partner's Capital Account