Prepare the realisation account, the partners' capital accounts and the bank account on dissolution.

1. 1 · Transfer assets to realisation. At book value, on the debit side (not cash or bank).
2. 2 · Transfer outside liabilities. On the credit side of realisation.
3. 3 · Record the realisations.
   • Cash from assets: Dr Bank, Cr Realisation.
   • Assets taken by partners: Dr Capital, Cr Realisation.
   • Liabilities paid and expenses: Dr Realisation, Cr Bank.
4. 4 · Find and share the result. Profit or loss in the profit-sharing ratio.
5. 5 · Repay partners' loans. After outside creditors.
6. 6 · Settle the capital accounts. Final balances paid from, or brought into, the bank.
7. 7 · Check. The bank account closes at zero.

Scoring tip: Prepare the three accounts side by side; each entry in one appears in another.