Assistant Manager-Accounts
549 Points
Posted on 09 May 2016
Accounting of Closing the book is simillar to accounting of dissolution of partnership firm.
1. An intermediate account in name of Realiasiation come into effect to close the books.
2. Credit all the assets to realisation A/c
3. Debit all Liabilities to Realisation A/c
4. Credit the consideration receivable to the realisation account which would be in the fprm of capital of new LLP.
5. Difference in the realisation account and the consideration received should be transfer to Shareholders A/c