Loss on realisation ₹84,000 was to be distributed between Sam and Shafiq (partners) in the ratio of 4 : 3 at the time of dissolution of partnership firm. Calculate the amount to be transferred to Shafiq's capital account.

₹36,000 to be debited

The correct answer is Option (2) → ₹36,000 to be debited.

Loss = 84,000
Ratio = 4:3
Shafiq share = 3/7
Share in loss = 84,000 x 3/7
                     = 36,000

Journal entry for distribution of loss-
Shafiq's Capital A/c Dr. 36,000
      To Realisation A/c     36,000

So, Shafiq account is debited with 36,000.