give relevant journal entries in the books of a fist when is converted into joint stock company
Answers
Answer:
The correct answer to this question is the acquiring business assumes them, all recorded assets and liabilities must first be transferred to the clearing account.
Explanation:
Given - Journal entries in the books .
To Find - Give relevant journal entries in the books of a fist when is converted into joint stock company.
The practical processes for shutting the partnership's books are listed below whether it is sold or incorporated.
Whether or not the acquiring business assumes them, all recorded assets and liabilities must first be transferred to the clearing account. Cash and bank balances, on the other hand, are not included if the buyer firm does not undertake.
Realization A/C "For transferring recorded assets"
..........Dr.
..........Dr.
in order to transfer recorded obligations
Liabilities of several kinds..................Dr.
To Realization AC
The second step is to purchase the firm from Dr. To Realization A/C.
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