In case of dissolution of partnership when we have to make separate loan ac and pay loan in cash and when do we transfer loan to partners capital Ac In one of the illustration insolvent partner loan i

Question

Tanish~Sharma · Answer

1.The firm has given advance to Y(it is Y's liability not Firms) , and it is generally settled in capital account. Conclusion- Loan TO partners is settled in partners capital 2.X has taken over liability to pay his wife i.e Mrs X loan (it is firms liability to pay to Mrs X). Here , ...what we usually do is - at the very beginning we write Mrs X loan in Cr. Side while transferring all liabilities from B.S. to Dissolution ac and then write Mr X in Dr. Side showing its payment. This balances the ac as it get settles when Cr. at one side and Dr. at the other. ...what they have done is they have done shortcut just by directly settled the loan from Mrs X and X capital. In short, they have done shortcut, you can do from noramal method, you will get same ans.

Shilpa · Answer

Illustration 5 and Practical 3

Tanish~Sharma · Answer

Can you state which illustration is this?

In case of dissolution of partnership when we have to make separate loan ac and pay loan in cash and when do we transfer loan to partners capital Ac In one of the illustration insolvent partner loan i

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