Cheat sheet · Class 12 · CBSE · Commerce Accountancy
Dissolution of Partnership Firm cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 12 · Accountancy
Cheat sheet
Chapter 4Dissolution of Partnership Firm
Section 48 order: outside liabilities → partners' loans → capitals → surplus in ratio.
1. Modes
- By agreement, by notice (at will), compulsory (insolvency, illegal business), on contingency, by court.
- Dissolution of partnership ≠ dissolution of firm.
2. Realisation Account
| Debit side | Credit side |
|---|---|
| Assets (except cash, fictitious) | Liabilities (outside) |
| Payment of liabilities | Cash from sale of assets |
| Realisation expenses | Assets taken over by partners |
Balance (profit/loss) goes to partners in profit-sharing ratio.
3. Order of Settlement
- Outside liabilities first.
- Then partners' loans.
- Then partners' capitals.
- Surplus shared in profit ratio.
4. Key Points
- Partner's loan isn't transferred to Realisation A/c.
- Firm's debts paid before private debts.
- Accumulated losses debited to capitals.
- Unrecorded assets: credit Realisation.
Remember: Modes | Realisation A/c | settlement order
Dissolution of Partnership Firm: questions and notes
More Class 12 · CBSE · Commerce Accountancy cheat sheets
- Accounting for Partnership Firms – Fundamentals
- Reconstitution of a Partnership Firm – Admission of a Partner
- Reconstitution of a Partnership Firm – Retirement/Death of a Partner
- Dissolution of Partnership Firm
- Accounting for Share Capital
- Issue and Redemption of Debentures
- Financial Statements of a Company
- Analysis of Financial Statements
- Accounting Ratios
- Cash Flow Statement
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