?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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hello Nikitha,
During the dissolution of partnership firm preliminary expenses will be paid...it will be firstly shown in the dr. side of realisation a/c ( as By bank a/c ) and then it is shown in the credit of bank account....hope it will help you.
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