Curriculum
Grade XII Accountancy
Tabular Notes
0/8
Work Sheets
0/8
Interactive Lessons
0/12
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Ch-1 Accounting for Partnership: Fundamentals
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Ch-2 Goodwill: Nature and Valuation
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Ch-3 Change in Profit-Sharing Ratio
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Ch-4 Admission of a Partner
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Ch-5 Retirement or Death of a Partner
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Ch-6 Dissolution of a Partnership Firm
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Ch-7 Issue of Shares
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Ch-8 Issue of Debentures
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Ch-9 Financial Statements of a Company
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Ch10-Analysis-of-Financial-Statements
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Ch-11-Accounting Ratios
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Ch-12 Cash Flow Statement
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Ch-6 Dissolution of a Partnership Firm
School Revise · Class 12 Accountancy · Chapter 6
Dissolution of a Partnership Firm
On dissolution, assets are sold and liabilities paid through a Realisation Account, and the profit or loss is shared among partners.
The Realisation Account
All assets and outside liabilities are transferred to the Realisation Account. Assets sold and liabilities paid are recorded there; the balance is the realisation profit or loss.
Settlement
The realisation profit or loss is shared in the profit-sharing ratio, and each partner capital is finally settled.
Practise it yourself
A problem appears below. Work it out, type your answer, and press Check. Use Show working if stuck, Next for another, New set to reshuffle. Endless practice.
Worked examples
Assets book 2,00,000 realised 2,30,000.
Profit 30,000.
Creditors 50,000 settled 45,000.
Gain 5,000.
Realisation profit 24,000 shared 2:1.
A 16,000; B 8,000.
Quick summary
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On dissolution, assets and outside liabilities go to the Realisation Account; assets sold and liabilities paid are recorded there, and the balance is the realisation profit or loss, shared in the profit-sharing ratio. |
© 2026 School Revise. Original content aligned to the CBSE and NCERT Class 12 Accountancy syllabus. Unauthorised copying is not permitted.
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