Partnership Accounts

Accountancy

In this Illustration why they have not taken "Loan from P" to Realisation A/C and they have reversed the Realisation A/C (loss entry) so is it compulsory to do it as we will be getting the same answer even if we don't reverse the entry.

Harsh Mittal

CA Final

★ 1K+

25-Sep-22 08:04

463

Answers (5)

If you don't create notional entry ,then bank balance figure will change ,though that was not a problem but you can't expect the marks . If you want marks create notional entries or you just gonna shiw your knowledge then don't create

venkatesh sundharamoorthy

CA Final

★ 34K+

25-Sep-22 12:55

You need to create the realization loss entry brought in cash by partners.

CA Suraj Lakhotia

Admin

26-Sep-22 16:10

CA Suraj Lakhotia Admin

You need to create the realization loss entry brought in cash by partners.

Why Loan from P not taken to Reliazation A/C

Thread Starter

Harsh Mittal

CA Final

★ 1K+

28-Sep-22 17:22

Thread Starter

Harsh Mittal

Why Loan from P not taken to Reliazation A/C

Even if you take this to realisation no impact Firts credit 8000 and debit 8000, so they directly paid in cash Alc You can do other way also

venkatesh sundharamoorthy

CA Final

★ 34K+

28-Sep-22 17:36

Ok thanks

Thread Starter

Harsh Mittal

CA Final

★ 1K+

28-Sep-22 20:25