The amount finally left unpaid on partner's capital account should be in
Answers
When an asset is taken over by a partner, his capital account is debited because the value of the asset is charged from his capital thus, his capital account is reduced.
Answer:
Dissolution of the company means the termination of all business activities of the company.
At the time of dissolution of the firm, the capital accounts of the partners are compiled in the same manner as at the time of admission, retirement and death of partners.
Explanation:
The amount finally left unpaid on partner's capital account should be in transfer to bank account.
Dissolution of the company means the termination of all business activities of the company.
At the time of dissolution of the firm, the capital accounts of the partners are compiled in the same manner as at the time of admission, retirement and death of partners. The only difference is that capital accounts are closed by transfer to a bank account. These accounts were never closed as a c/d balance because the business is already liquidated and the account itself must be closed as:
a) If the partner's capital account has a credit balance, it will be entered as "To Cash/Bank A/c" on the debit side of the capital account against the balancing value and the account will be closed.
b) If the partner's capital account has a debit balance, it will be entered as "Cash/Bank A/c" on the credit side of the capital account against the balancing value and the account will be closed.
At the time of dissolution of the business, all balances in the capital account must be settled through the bank account.
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