?What is the treatment for preliminary expenses when given in balance sheet during dissolution of a partnership firm?

Open in App

Solution

Dear Student,

At the time of dissolution of a partnership firm, any preliminary expenses appearing on the Assets side of the Balance Sheet are transferred to the debit side of Partners' Capital Accounts (i.e. they are to be written-off by debiting all partners' capital accounts in their profit sharing ratio).

For further queries, keep posting!!

Suggest Corrections

Similar questions

Give the journal entry for the treatment of partner's loan appearing on the assets side of the balance sheet, on dissolution of a partnership firm.

Q. At the time of dissolution of the firm; if goodwill appears in the Balance Sheet, it is transferred to ______________ .

Pass journal entries for the following transactions :

(i) Dissolution expenses amounted to Rs. 20,000. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner. The expenses were paid by Maruti.

(ii) Sudhir, a partner, was allowed a remuneration of Rs. 10,000 to carry out dissolution of the firm. He was to bear all expenses of realisation which amounted to Rs. 16,000 were paid by the firm.

(iii) Ravi, a partner, is allowed a remuneration of Rs. 15,000 for dissolution work and is to bear all expenses of realisation which amounted to Rs 5,000 were paid by the firm.

(iv) Anil, a partner, is paid remuneration of Rs. 20,000 for dissolution work. Realisation expenses amounted to Rs. 7,500 were paid by the firm.

(v) Vijay, a partner, paid realisation expenses of Rs 10,000 and these were to be borne by him.

Q. At the time of dissolution of the firm, The assets and liabilities appearing in the Balance sheet transferred to ____________ .

Q. Distinguish between dissolution of partnership and dissolution of partnership firm.

Join BYJU'S Learning Program