Partnership

Thread Starter

In this sum it is not credited to realization account?

Thread Starter

In this sum it is not credited to realization account?

Nisha Manikantan

In this sum the loan of Mrs x was taken over by Mr X So without transferring to realization .. u should pass entry as Mrs x loan account to X capital account

Thread Starter

Can you explain in detail?

Himanshu Somani

First you'll transfer it to credit of realisation and then since partner is agreeing to take over you'll pass entry Realisation dr and cr concerned partner's capital account ...so ultimately there will be nil effect and another option can be of passing a single entry as done by ICAI in the Question which is explained above

Nisha Manikantan

Suppose if that adjustment was not given normally u would have credited to Realization Jus because a partner is compensating for firms loan taken from Mrs x... we are not transferring to realization ! I hope it is clear for u :)

Thread Starter

Thanks a lot