How is partners' current account treated or recorded in the dissolution of a partnership firm? Explain.
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Partner's current account is not carried in the realisation account because it is an insider liability.
Realisation account only records outside liabilities .
When we prepare partners current account at the time of dissolution to make adjustments. If there is a debit balance after making adjustments then it is carried down on the credit side of the Bank Account . If the balance in the current account is a credit balance then it is carried down on the debit side of the bank account. This is paid off at last.
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