When is the memorandum of balance sheet prepared - Accountancy - Reconstitution- Admission of a Partner

Question

When is the memorandum of balance sheet prepared?

Mehak Garg · Accepted Answer

Dear Student,

Memorandum Balance Sheet is prepared at the time of dissolution of
a partnership firm It is prepared in the cases, where the
book-values of assets are not mentioned in the given Balance Sheet
Instead, the realised values of assets are provided in the question
In such cases, the book-values of assets are determined by
preparing the Memorandum Balance Sheet In this Balance Sheet,
capital accounts of all the partners and other liabilities are
shown on the Liabilities Side and on the Assets side; Cash or Bank
balance is shown Finally, the balancing figure is ascertained by
deducting Assets from Liabilities, which represents the value of
Total Assets This is then transferred to the debit side of the
Revaluation Account
Regards