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Partnership accounts

A/c entries 513 views 6 replies

Neeti

Student

235 Points Joined July 2011

Hi All,

I have a doubt in Realization account. Is Workmen Compensation Reserve transferred to credit of Realization account? I have come across a sum where the same has not been transfered,whereas Machinery Replacement Reserve has been transfereed.

Is it because Workmen Compensation Reserve is not an outsiders liability? And what about Machinery Replacement Reserve?

Please help! I am learning by self study and need clarity on this matter.

Replies (6)

mahesh

student

57 Points Joined May 2013

if no libiality arises on a/c of wcr dan it is trnsfrd to owners a/c but if any liab. hs arised dan amt upto liab. wud b trnsfrd to realz a/c n balance to ownres a/c

shubham

student

238 Points Joined December 2013

yes agree with mr.mahesh

Chinnu Raj

CA Final Student B.Com

1067 Points Joined July 2012

Yeaa,,,,,,,agreed with Shubham........

Neeti

Student

235 Points Joined July 2011

This problem is from Dissolution of Partnership chapter of Advanced Accounts,IPCC.In that sum,all external liabilities such as creditors,Bills payable etc have been transferred to credit of Realization account but WCR has not been transferred. My question is why?