ACCOUNTING FRIEND

Tuesday, 10 February 2026

Saturday, 31 January 2026

EXAM MEMORY TRICK - COMMON JOURNAL ENTRIES FOR DISSOLUTION - PREPARED BY Dr.PRASANTH VENPAKAL

COMMON JOURNAL ENTRIES FOR DISSOLUTION

1. REALISATION ACCOUNT

(A) Transfer of Assets to Realisation

Realisation A/c Dr

To Sundry Assets A/c

(B) Transfer of Liabilities to Realisation

Sundry Liabilities A/c Dr

To Realisation A/c

(C) Sale of Assets for Cash/Bank

Cash/Bank A/c Dr

To Realisation A/c

(D) Asset taken over by Partner

Partner’s Capital A/c Dr

To Realisation A/c

(E) Unrecorded asset realised

Cash/Bank A/c Dr

To Realisation A/c

(F) Unrecorded asset taken by partner

Partner’s Capital A/c Dr

To Realisation A/c

(G) Payment of Liabilities

Realisation A/c Dr

To Cash/Bank A/c

(H) Creditor takes asset (no cash involved)

👉 No Entry (already transferred to Realisation)

(I) Realisation Expenses paid by firm

Realisation A/c Dr

To Cash/Bank A/c

(J) Realisation Expenses paid by partner

Realisation A/c Dr

To Partner’s Capital A/c

(K) Partner paid expenses on behalf of firm

Realisation A/c Dr

To Partner’s Capital A/c

(L) Commission/Remuneration to partner for dissolution work

Realisation A/c Dr

To Partner’s Capital A/c

(M) Loss on Realisation

Partners’ Capital A/c Dr

To Realisation A/c

(N) Profit on Realisation

Realisation A/c Dr

To Partners’ Capital A/c

2. PARTNER’S CAPITAL ACCOUNT

(A) Asset taken over

Partner’s Capital A/c Dr

To Realisation A/c

(B) Realisation expenses borne by partner

Realisation A/c Dr

To Partner’s Capital A/c

(C) Expenses paid by firm on behalf of partner

Partner’s Capital A/c Dr

To Bank A/c

(D) Distribution of Profit on Realisation

Realisation A/c Dr

To Partners’ Capital A/c (ratio)

(E) Distribution of Loss on Realisation

Partners’ Capital A/c Dr (ratio)

To Realisation A/c

(F) Undistributed P&L balance (loss)

Partners’ Capital A/c Dr

To Profit & Loss A/c

(G) Undistributed P&L balance (profit)

Profit & Loss A/c Dr

To Partners’ Capital A/c

(H) Final payment to partners

Partner’s Capital A/c Dr

To Cash/Bank A/c

(I) Deficiency brought by partner

Cash/Bank A/c Dr

To Partner’s Capital A/c

3. PARTNER’S LOAN ACCOUNT

(A) Loan repaid to partner

Partner’s Loan A/c Dr

To Bank A/c

(B) Interest/extra payment on loan

Realisation A/c Dr

To Bank A/c

(C) Loan paid by partner on behalf of firm

Realisation A/c Dr

To Partner’s Capital A/c

4. BANK / CASH ACCOUNT

(A) Assets realised

Bank A/c Dr

To Realisation A/c

(B) Liabilities paid

Realisation A/c Dr

To Bank A/c

(C) Recovery of bad debts previously written off

Bank A/c Dr

To Realisation A/c

(D) Partner brings cash

Bank A/c Dr

To Partner’s Capital A/c

(E) Payment to partners (final settlement)

Partner’s Capital A/c Dr

To Bank A/c

🎯 EXAM MEMORY TRICK (Very Useful)

Rule of Realisation:

Situation	Debit	Credit
Asset realised	Bank	Realisation
Liability paid	Realisation	Bank
Expense	Realisation	Bank
Partner benefit	Partner Capital	Realisation
Profit	Realisation	Partner Capital
Loss	Partner Capital	Realisation

FLOWCHART OF DISSOLUTION ENTRIES

Start

↓

Transfer Assets → Realisation

Transfer Liabilities → Realisation

↓

Sell assets / Taken by partners

Pay liabilities & expenses

↓

Find Profit or Loss on Realisation

↓

Transfer to Capital Accounts

↓

Settle Partner Loans

↓

Pay Capitals through Bank

↓

Firm Closed

Sunday, 21 December 2025

ACCOUNTANCY PROJECT VIVA QUESTIONS CLASS 11 #trending #accountancyproject

ACCOUNTANCY PROJECT VIVA QUESTIONS CLASS 11

1. What is meant by an Accountancy project?
An Accountancy project is a practical study applying accounting concepts to a business case.

2. Why is a case study included in an Accountancy project?
To understand real-life application of accounting principles.

3. Which system of accounting is generally used in school projects?
Double Entry System.

4. State one objective of preparing an Accountancy project.
To develop practical knowledge of accounting.

5. What skill is enhanced by preparing journals and ledgers?
Analytical and recording skills.

6. Which objective relates to understanding business performance?
Preparation of financial statements.

7. What type of business is commonly selected for projects?
Small trading or service business.

8. What is a transaction in accounting?
A financial event involving money.

9. Are non-cash transactions recorded in accounts?
Yes, if they affect financial position.

10. What is a journal?
A book of original entry.

11. Which rule is applied while journalising transactions?
Rules of debit and credit.

12. What is narration in a journal entry?
Explanation of the transaction.

13. Which side records debit amounts in a journal?
Left side.

14. What is a ledger?
A book of final entry.

15. Why is ledger called the principal book?
Because it contains all accounts.

16. What is posting?
Transferring entries from journal to ledger.

17. What does balancing of ledger show?
Closing balance of accounts.

18. What is a trial balance?
A statement of debit and credit balances.

19. What is the main purpose of trial balance?
To check arithmetical accuracy.

20. Does a tallied trial balance guarantee no errors?
No.

21. What does a Trading Account calculate?
Gross profit or gross loss.

22. Where is opening stock shown?
Debit side of Trading Account.

23. Which items appear on credit side of Trading Account?
Sales and closing stock.

24. What does Profit and Loss Account show?
Net profit or net loss.

25. Which expenses are recorded in Profit and Loss Account?
Indirect expenses.

26. Where is net profit transferred?
Capital Account.

27. What is a Balance Sheet?
A statement of assets and liabilities.

28. Which side shows assets in a Balance Sheet?
Asset side.

29. Why is Balance Sheet called a position statement?
It shows financial position on a specific date.

30. What do project findings highlight?
Financial performance and position.

31. What indicates good financial health in findings?
Higher profit and sufficient assets.

32. What accounting concept is observed through findings?
Going concern concept.

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