Accounting Entries To Close The Books Of Accounts - Transfer Stage

1. For Transferring Assets to Realisation Account:

Realisation A/c            ...Dr.    (with book value or Balance Sheet value)

     To Assets A/c (Individually)

(Being a transfer of various assets at book value to the Realisation Account)

2. For Transferring Liabilities to Realisation Account:

Sundry Creditors A/c                                  ...Dr.

Bills Payable A/c                                        ...Dr.

Bank Overdraft A/c                                    ...Dr.

Outsider's Loan A/c (other than partner)    ...Dr.

Outstanding Expenses A/c                         ...Dr.

          To Realisation A/c

(Being a transfer of liabilities to the Realisation Account)

3. For Transfer of Provision Against Closing Assets:

Provision for Doubtful Debts A/c           ...Dr.

Provision for Discount A/c                     ...Dr.

Provision for Depreciation A/c               ...Dr.

Contingency Reserve A/c                       ...Dr.

Joint Life Policy Reserve A/c                 ...Dr.

Investment Fluctuation Fund A/c           ...Dr.

          To Realisation A/c

(Being a transfer of various provisions to the Realisation Account.)

4. For Transfer of Accumulated Profits and Reserves:

General Reserve A/c                             ...Dr.

Reserve Fund A/c                                  ...Dr.

Profit and Loss A/c (Credit balance)     ...Dr.

         To All Partners' Capital / Current A/c

(Being accumulated profit and reserves transferred to all partners' Capital / Current A/c in their profit-sharing ratio.)

5. For Transfer of Accumulated Losses:

All Partners’ Capital / Current A/c      ...Dr.

           To Profit and Loss A/c (Debit balance)

           To Advertising Suspense A/c

(Being accumulated loss transferred to all partners' Capital / Current A/c in their profit-sharing ratio)