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Partnership accounts

Neeti (Student) (235 Points)

28 January 2014

Hi All,

I have a doubt in Realization account. Is Workmen Compensation Reserve transferred to credit of Realization account? I have come across a sum where the same has not been transfered,whereas Machinery Replacement Reserve has been transfereed.

Is it because Workmen Compensation Reserve is not an outsiders liability? And what about Machinery Replacement Reserve?

Please help! I am learning by self study and need clarity on this matter.

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6 Replies

mahesh (student) (57 Points)
Replied 29 January 2014

if no libiality arises on a/c of wcr dan it is trnsfrd to owners a/c but if any liab. hs arised dan amt upto liab. wud b trnsfrd to realz a/c n balance to ownres a/c

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shubham (student) (238 Points)
Replied 29 January 2014

yes agree with mr.mahesh

Chinnu Raj (CA Final Student B.Com) (1067 Points)
Replied 29 January 2014

Yeaa,,,,,,,agreed with Shubham........

Neeti (Student) (235 Points)
Replied 29 January 2014

This problem is from Dissolution of Partnership chapter of Advanced Accounts,IPCC.In that sum,all external liabilities such as creditors,Bills payable etc have been transferred to credit of Realization account but WCR has not been transferred. My question is why?