Question : A firm is dissolved, and Raman, a partner is to carry out the dissolution for which he will get Rs. 70,000, including expenses. Realisation Expenses were Rs. 25,000, which were paid by the firm. Raman's capital Account will be debited by
Option 1: Rs 50,000
Option 2: Rs 25,000
Option 3: Rs 70,000
Option 4: None of these
Answer (1)
18th Jan, 2024
Correct Answer: Rs 25,000
Solution :
Answer =
Rs 25,000.
If the partner agrees to bear all expenses of realisation he gets a commission. But if expenses were paid by the firm on his behalf then capital will be debited by the amount of expenses.
Partner's capital a/c.......Dr 25,000
To cash/bank a/c 25,000
Hence, the correct option is 2.
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