Question

Toya and Soya are partners sharing profits and losses equally. They decided to dissolve the firm on 15^th March, 2005 which resulted in a loss of Rs. 30,000. The capital accounts of Toya and Soya was Rs. 20,000 and Rs. 30,000 respectively. The cash account showed a balance of Rs. 20,000. You are required to pass journal entries for 

1. Transfer of loss to the capital accounts of partners. 

2. Making final payments to the partners.

Answer 1

T's Capital	Dr.	15,000
S's Capital	Dr.	15,000
To realisation		30,000

(Being realisation loss transferrred to partner's captial a/cs)

T's capital	Dr.	10,000
S's captial	Dr.	10,000
To Cash		20,000

(Being cash paid to partners)