Accounts

[sourgho16]

I have had this doubt for a long time..
During simple dissolution of partnership firm bank a/c is not transferred to realisation a/c. But when a company takes over a partnership firm in some of the mark schemes they are transferring bank to realisation a/c and in some they are not. However we have to transfer all assets and liabilities at book value to realisation a/c right.
SO my question is when a company takes over a partnership when do we transfer bank to realisation a/c and when do we not?( for e.g May 2007 Paper 4 Q 1and Nov 2008 paper 4 Q 1.....here they are not transferring)

And May 2009 paper 4 Q 2------ What is meant by financial consequence????

 

[sourgho16]

Do help me with this......its been a long nagging doubt

 

[sourgho16]

anyone?

 

[sourgho16]

Please anyone just clear this doubt of mine

 

[whatsmyname]

hey bro seems like no1 knows..and me myself im an AS student..on a temporary basis i recommend u try http://www.thestudentroom.co.uk/wiki/Ca ... sion_Notes

or google ur thing some kinda website must exist to help you...if u still have problems then lemme know imma ask my teacher and friends and let u know sth thanks

 

[nirajgrg]

as far as i know, bank a/c is not transferred to the realisation account, all other assets and liabilities are transferred
when another company takes over, the purchase consideration is included in the realisation
u might have confused with the bank costs or something else like that

 

[nirajgrg]

for may 2009 paper 4 q2, financial consequence refers to the consequence the company will face if they chose any of the two options
if they sell for more than the realisable value of the net assets, the company will make profit, if not they will make loss
(both options make losses here though, only the amount of losses is different)

 

[kavimorice]

ANY PREDICTED QUESTION FOR ACCOUNT PAPER 2???