One Line Answer
In what proportion is the balance on Realisation Account transferred to Partners’ Capital / Current Accounts?
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Solution 1
The balance of the Realisation Account is to be transferred to Partners’ Capital Accounts in their profit-sharing ratio. If the partnership deed is silent, then profits or losses arising from Realisation Account are to be distributed in equal proportion amongst all the partners of the firm.
Solution 2
The balance on realisation Account is transferred to Partners’ Capital / Current Accounts in their profit sharing ratio.
Concept: Dissolution of Partnership Firm
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