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At the time of dissolution, how would you treat the loss shown by Profit and Loss A/c in the Balance Sheet?
  • a)
    Dr. Side of Partners capital account
  • b)
    Credit side of partners’ capital account
  • c)
    Cash Account
  • d)
    Realisation Account
Correct answer is option 'A'. Can you explain this answer?
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At the time of dissolution, how would you treat the loss shown by Prof...
Profit and Loss (Dr. balance) given in the balance sheet will be transferred to the debit side of partners capital account in their respective profit sharing ratio. It should not be transferred to the realization account.
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At the time of dissolution, how would you treat the loss shown by Prof...
Loss has a debit balance for it's treatment it is credited and partners are debited and balance of capital a/c which is credit is lowered by the amount to be borne by them according to their pre determined ratio of sharing profit and losses.
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At the time of dissolution, how would you treat the loss shown by Prof...
The balance shown in P&L A/c should be distributed among the partners in their profit sharing ratio. dye to this the share in the balance of P&L of each partner will be debited to their respective capital A/cs.Becz the distribution of balance would decrease their capital.
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Read the following information and answer the questions that follows: Mehta and Menon were partners in a firm sharing profits and losses in the ratio of 7 : 3. They decided to dissolve firm on 31st March, 2016 on that date, their books showed the following ledger account balances :₹Sundry Creditors 27,000Profit & Loss A/c (Dr.) 8,000Cash in hand 6,000Bank Loan 20,000Bills Payable 5,000Sundry Assets 1,98,000Capital A/cs :Mehta 1,12,000Menon 48,000Additional information :(i) Bills payable falling due on 31st May, 2016 retired on the date of dissolution of the firm at a rebate of 6% per annum.(ii) The bankers accepted the furniture (included in sundry assets) having a book value of ₹18,000 in full settlement of the loan given by them.(iii) Remaining assets were sold for ₹ 1,50,000.(iv) Liability on account of outstanding salary not recorded in the books, amounting to ₹15,000 was met.(v) Menon agreed to take over the responsibility of completing the dissolution work to bear all expenses of realization at an agreed remuneration of ₹2,000. The actual realization expenses were ₹1,500 which were paid by the firm on behalf of Menon.Consider the following Accounts:(i) Mehta’s Capital Account(ii) Menon’s Capital Account(iii) Realisation Account(iv) Profit and Loss AccountQ. Which account will be affected by the realisation expenses paid by Menon?

Deepanshu Himanshu and Pulkit are partners sharing profit and loss and their capital account capital account is the password to like Himanshu 90000 Pulkit 50000 current account 15000 1600 balance Anshu 25000 Himanshu credit balance Pulkit 32500 credit balance drawings 25520 Manshu 15000 and at the rate percent per annum 10% of 12% respectively before closing the accounts following point 1 notice machinery purchased on 1st October 2018 10000 debited to repair accounts and depreciation charged thereon at the rate of 15% per annum personal expenses paid to Himanshu 48 6000 word was debited to which is of 13th September 2018 life insurance premium paid off Dipanshu rate 6500 was paid by the form of 31 3 2019 charge to office expenses prepare Profit and Loss appropriation account for the year ending 31 March 2019 Related: Profit and Loss Appropriation Account - Class 12, Accountancy?

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At the time of dissolution, how would you treat the loss shown by Profit and Loss A/c in the Balance Sheet?a)Dr. Side of Partners capital accountb)Credit side of partners’ capital accountc)Cash Accountd)Realisation AccountCorrect answer is option 'A'. Can you explain this answer?
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