Dissolution of Partnership Memorandum Balance Sheet

Partnership - Dissolution of Partnership

If Balance Sheet is not provided in the question a Memorandum Balance Sheet needs to be prepared.
Whatever items of Assets, Liabilities, Reserves & Partner’s Capital with their respective amounts is provided in the question is put up in the Memorandum Balance Sheet.
In the Memorandum Balance Sheet so prepared, the total of Liabilities side may not match with total of Assets side.
The balancing figure represents the amount of any missing asset/liability/reserve
If Liabilities > Assets the missing item is assumed to be Sundry Assets and
if Assets > Liabilities the missing item is assumed to be Profit & Loss account
Once Memorandum Balance Sheet is ready, Realisation A/c is prepared and the remaining steps for closure of various accounts are same.