When a partnership firm dissolves, the assets are distributed among the partners. In some cases, a partner may decide to take over a specific asset. In such a scenario, a journal entry needs to be made to record the transaction.


To record the transaction, the following journal entry needs to be made:

Asset taken over by a partner in case of dissolution of partnership firm

Debit: Partner's capital account (with the value of the asset taken over)
Credit: Asset account (with the value of the asset taken over)


Let's assume that a partnership firm has two partners, A and B, and they have decided to dissolve the partnership. The firm has assets worth Rs. 1,00,000, which need to be distributed among the partners. Partner A decides to take over the machinery, which is worth Rs. 50,000. The journal entry to record this transaction would be:

Asset taken over by a partner in case of dissolution of partnership firm

Debit: Partner A's capital account (Rs. 50,000)
Credit: Machinery account (Rs. 50,000)

This journal entry records the transfer of the machinery from the partnership firm to Partner A. As a result, Partner A's capital account increases by Rs. 50,000, and the machinery account decreases by Rs. 50,000.


When a partner takes over an asset in case of the dissolution of a partnership firm, a journal entry needs to be made to record the transaction. The entry debits the partner's capital account and credits the asset account with the value of the asset taken over. This ensures that the accounts are accurately updated and the transaction is properly recorded.