Education and Career Forum

Financial Accounting as a subject is designed to make students aware about the different ways of calculating and maintaining the accounts of all those who are in the field of decision making. Especially it’s a subject that is meant for all the students who wish to be stake holders, bank employees and even suppliers. In an organisation too the whole procedure to keep track of the finances and accounts of the people who are not a part of the organisation is necessary in the daily activities. Some of the topics taught in this subject are circumstances and factors under which a partnership firm gets dissolved, capital deficiency, preparation of revaluation accounts, different methods of treatment of goodwill on admission of a partner, meaning of joint life policies and individual life policy, preparation of balance sheet and necessary ledger accounts, differences between realisation and revaluation accounts, sacrificing ratio and gain ratio, adjustments to be made in the book of the firm at the time of admission of new partner. The 120 marks for this paper has been divided into 3 sections with first section holding 24 marks (6 marks X 4), section holding 48 marks (12 marks X 4) and last section holding 48 marks (24 marks X2).

I want to know admission of partner...
If in opening balance sheet they give stock Rs-20,000.
And the adjustment is Stock is tobe written off to the extent of Rs.5000.
What amount should be enter in in the realisation A/c