?What is the treatment for preliminary expenses when given in balance sheet during dissolution of a partnership firm?
Dear Student,
At the time of dissolution of a partnership firm, any preliminary expenses appearing on the Assets side of the Balance Sheet are transferred to the debit side of Partners' Capital Accounts (i.e. they are to be written-off by debiting all partners' capital accounts in their profit sharing ratio).
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At the time of dissolution of a partnership firm, any preliminary expenses appearing on the Assets side of the Balance Sheet are transferred to the debit side of Partners' Capital Accounts (i.e. they are to be written-off by debiting all partners' capital accounts in their profit sharing ratio).
For further queries, keep posting!!