Partner takes over the investment of 20,000. So the account will be credited on the transfer of ownership of the investment to partner.

partner's capital

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bank

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realisation

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revaluation

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Solution

The correct option is C realisation
Partner's capital account will be debited and realisation account will be credited on transfer of investment to partners.

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Similar questions

Q. When partners chose to take the money invested in the business entirely, we debit account and credit account.

Q. The balance in the investments Fluctuation Fund, after meeting the loss on revaluation of investment at the time of admission of a partner will be transferred to _____________ .

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Q. The interest on partners capital accounts is to be credited to _______________.

A and B were partners in a firm sharing profits and losses equally. Their firm was dissolve on 15th March, 2014, which resulted in a loss of Rs. 30,000. On that date the capital account of A showed a credit balance of Rs. 20,000 and that of B a credit balance of Rs. 30,000. The cash account had a balance of Rs. 20,000.
You are required to pass the necessary journal entries for the:
(i) Transfer of loss to the capital accounts of the partners and
(ii) Making final payment to the partners.

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Partner takes over the investment of 20,000. So the account will be credited on the transfer of ownership of the investment to partner.

The correct option is C realisationPartner's capital account will be debited and realisation account will be credited on transfer of investment to partners.

The correct option is C realisation
Partner's capital account will be debited and realisation account will be credited on transfer of investment to partners.