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
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.
Question : A firm is dissolved, and Sunil, 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. Realisation Account will be debited by
Question : A firm is dissolved, and Pritam, a partner is to carry out the dissolution for which he will get Rs. 10,000, including expenses. Realisation Expenses were Rs. 2,500. Realisation Account will be debited by
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