Dissolution Of Partnership Firm

Dissolution of partnership refers to

Dissolution of partnership refers to a change in the relationship between partners (like on admission or retirement), but the firm may continue. Disso

This is a special account prepared

This is a special account prepared at the time of dissolution. All assets (except cash/bank) and external liabilities are transferred to this account

Unrecorded assets are those not shown

Unrecorded assets are those not shown in the balance sheet but still exist (like an old computer with zero book value). When sold, the amount received

After transferring profit or loss from

After transferring profit or loss from Realisation Account, the final balance in each partner’s capital account is settled in cash. A credit balance m