Accounting:Liquidation of a Partnership

Bank loan is a type of liability, Is credit side.
The original entry of Bank Loan is
Dr Cash/Bank
Cr Bank Loan
To state in loan incured in reported it in the balance sheet.

The positive figure of bank Loan is Credit Side, If it is put into realization account, that means it has to be written off. So the entries of transferring the mount of bank Loan is :
Dr bank loan
Cr Realization
To transferring the amount of bank loan to the buyers of the firm as they agreed to bear the liability.

Clear?

2007-02-06 17:19:56 補充：
Realization Loss means the value of net asset sold is higher than the purchase consideration.For example, Your total net asset transfer to Realization account in total $1,000,000, the purchase consideration is $900,000That means a loss of Capital of $100,000.

2007-02-06 17:20:23 補充：
If the partner's capital is sufficient to cover the amount of loss, then the loss must be distribute to partner base on agreed ratio.If the total of ALL partner 's capital is insufficient to cover the amount, it is the liability of the General Partner.

2007-02-06 17:20:36 補充：
It usually distribute the loss to the partner based on their agreed ratio.