Скачать или смотреть Internal vs External Liabilities in Dissolution of Firm | Class 12 Accountancy Chapter 7 📊

Did you know that a loan from a partner and a loan from a partner's spouse are treated completely differently during the dissolution of a firm? 🤔 One goes to the Realisation Account, and the other doesn't! Watch this video to master the concept of Internal and External Liabilities. 🚀

Continuing our series on Chapter 7: Dissolution of a Partnership Firm, this lesson focuses on the crucial distinction between external and internal liabilities. We explain why external liabilities like creditors and bank loans are transferred to the Realisation Account, while internal liabilities—specifically Partner's Loans—are paid off directly. You will also learn the three alternatives for paying off these liabilities: firm payment, partner takeover, or asset settlement. 💡

Key Learnings

✅ Definition of External Liabilities: Creditors, BP, Bank Loans, and third-party loans (including Mrs. Partner's Loan).

✅ Definition of Internal Liabilities: Partner's Capital and Partner's Loan accounts.

✅ The Golden Rule for Partner's Loans: Why they are NOT transferred to the Realisation Account.

✅ Accounting for Mrs. Partner's Loan: Why it is treated as an external liability.

✅ Payment Alternatives:

Paid by Firm (Realisation to Bank).

Taken over by Partner (Realisation to Partner's Capital).

Settled against an Asset (No Entry).

✅ Direct Payment Entry: How to record the payment of a partner’s loan (Partner's Loan A/c Dr. to Bank).

⏰ CHAPTER TIMESTAMPS:

00:04 — Recap: Asset Transfer and Realisation
01:19 — Introduction to Liabilities in Dissolution
01:40 — External vs. Internal Liabilities: Why the treatment differs
02:17 — Identifying External Liabilities (Creditors, BP, Bank Loan)
03:02 — The Case of Mrs. C’s Loan: External or Internal?
04:00 — How to handle Partner's Capital and Opening Balances
04:25 — Why Partner’s Loan is NOT transferred to Realisation
05:16 — Journal Entry for Transferring External Liabilities
06:15 — Three Alternatives for Liability Payment
07:14 — Entry when the Firm pays the Liability
07:44 — Entry when a Partner takes over the Liability
08:46 — Partner's Loan vs. Spouse's Loan: The critical difference
09:27 — Final Journal Entry for Partner's Loan Payment

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