Dear Experts,
I have the following doubts in Partnership accounting. Urgent help would be higly helpful
1. While preparing partner capital accounts in the dissolution partner. If capital is fixed, where should I put the realization adjustment (Current or Capital account).
Also is it necessery to prepare the current account of NOT stated in the exam question if capital is fixed but current and capital balanace are given?
2. If one partner is insolvent then in whcih ratio will the remaiing partners contribute (a) if the capital is fixed, (ii) if the capital is fluctuating. How to calculte insolvent partners share? Should the relalization adjustment be considered?
3. In piece meal distribution what is the signoificance of reserves?
4. when the installement is distributed to the partners what is the treatement is reserves if reserves are maintained?
5. In whcih condition is the cash taken over if the firm is been absorbed (if not mentioned specifically that the cash has been taken over)
Many thanks for your help
CAclubindia
