A & B are partners sharing profits in the ratio of 3:2.Their business is running at a loss so they decided to dissolve their partnership firm. At the time of dissolution there is a liability for workmen's claim of ₹15000.

What will be the journal entry for paying this liability?

Realisation A/c Dr. ₹15000
  To Bank A/c                    ₹15000
(Liability paid)

If there is no reserve, whole amount will be paid through realisation account.