When assets are taken over by a partner during dissolution, the partner's capital account is debited with the agreed value.
Calculation of investment value taken by Bharat:
Total investments in the firm = ₹20,000
Bharat took half of the investment = 220,000 = ₹10,000
This was taken at 10% less than book value:
Value at which taken = ₹10,000 - 10% of ₹10,000
= ₹10,000 - ₹1,000
= ₹9,000
Journal Entry for this transaction:
When Bharat takes over the investment, the Realisation Account is credited (asset disposed of) and Bharat's Capital Account is debited (asset taken by partner).
Bharat's Capital A/c Dr. 9,000
To Realisation A/c 9,000
Therefore, Bharat's capital will be debited by ₹9,000.