Question

give the journal entry for an asset taken over by a partner on dissolution of a firm​

Answer 1

Answer: partner's capital a/c           Dr.

                                    To realisation a/c

Explanation:

Answer 2

We are asked to provide the journal entry for an asset taken over by a partner on the dissolution of a firm and the journal entry will be as under:  

                             Partners Capital a/c

                               To,  Realisation a/c

• In the case of Dissolution of the firm, $4$ accounts are opened to start the dissolution process. They are:
• Realization Account
• Partners Capital Account
• Partners Loan Account
• Bank or Cash Account
• The Realisation account is opened to transfer all the assets, liability, and expenses of dissolution to this account.
• The assets taken over are debited to the Partners Capital Account.

PROJECT CODE: #SPJ3