Gopi Guna Realisation Account Solution

Dissolution of Partnership - Partnership Accounts

Dissolution of partnership refers to the process of winding up the partnership business. It involves the realisation of assets, payment of liabilities, and distribution of remaining profits or losses among the partners. Gopi Guna Realisation Account is used to record the transactions related to the realisation of assets and payment of liabilities in the dissolution process.

Realisation of Assets

The first step in the dissolution process is to realise the assets of the partnership. The assets may be sold, transferred to the partners, or distributed among the partners in kind. The transactions related to the realisation of assets are recorded in the Gopi Guna Realisation Account. The following transactions are recorded in the account:

- Sale of assets: The proceeds from the sale of assets are credited to the account.
- Transfer of assets to partners: The cost of assets transferred to partners is debited to the account.
- Distribution of assets in kind: The cost of assets distributed among the partners is debited to the account.

Payment of Liabilities

The next step in the dissolution process is to pay off the liabilities of the partnership. The liabilities may be paid off using the proceeds from the realisation of assets. The transactions related to the payment of liabilities are also recorded in the Gopi Guna Realisation Account. The following transactions are recorded in the account:

- Payment of creditors: The amount paid to creditors is debited to the account.
- Payment of partners' loans: The amount paid to partners for their loans is debited to the account.

Distribution of Remaining Profits or Losses

After the assets have been realised and the liabilities have been paid off, the remaining profits or losses are distributed among the partners. The amount distributed to each partner is calculated based on their profit sharing ratio. The transactions related to the distribution of profits or losses are recorded in the partners' capital accounts. The following transactions are recorded in the accounts:

- Debit the amount due to the partners to their respective capital accounts.
- Credit the amount distributed to the partners to their respective capital accounts.

Conclusion

In conclusion, Gopi Guna Realisation Account is used to record the transactions related to the realisation of assets and payment of liabilities in the dissolution process. The account helps in determining the amount available for the distribution of profits or losses among the partners. The process of dissolution of partnership is important for the partners to move on and pursue other ventures.