Dissolution of a Partnership Firm – Accounting Treatment | Concept No. 12 | Class 12 Accountancy

In this video, we explain Concept No. 12 – Accounting Treatment on Dissolution of a Partnership Firm from Class 12 Accountancy under Partnership Accounts. This is one of the most important terminal topics of the partnership chapter and carries high weight in the CBSE board examinations. Students will learn how the firm’s books are closed at the time of dissolution and how assets, liabilities, and partners’ capitals are finally settled through proper accounting treatment. What is covered: Meaning of Dissolution of Partnership Firm Difference between Dissolution of Partnership and Dissolution of Firm Preparation of Realisation Account Transfer of assets and liabilities to Realisation Account Treatment of unrecorded assets and liabilities Realisation of assets Payment of liabilities Partners’ Capital Account after dissolution Bank Account preparation Settlement of partners’ dues Board-oriented numericals and short notes This video is ideal for Class 12 CBSE students preparing for the 2026 Board Examination. Channel: Success Mantra for Class 11 and 12 Educator: CA Manish Kalra