When an asset is taken over by a partner, why is his Capital Account debited? Post category:Accountancy Reading time:1 mins read SOLUTION When an asset is taken over by a partner, his Capital Account is debited because the claim of Capital Account is reduced by the value of the asset taken over. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostOn dissolution, what entry is passed if a partner takes over an asset of the firm Valued Rs. 10,000 at Rs. 6,000? Next PostWhen a liability is to be discharged by a partner, why is his Capital Account credited? You Might Also Like What are Current Liabilities? October 1, 2022 On dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries. September 27, 2022 Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows: July 28, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
On dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries. September 27, 2022
Suresh, Ramesh, Mahesh and Ganesh were partners in a firm sharing profits in the ratio of 2 : 2 : 3 : 3. On 1st April, 2016, their Balance Sheet was as follows: July 28, 2022