Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following information was provided: Question: Realisation expenses amounted to Rs. 2,000 which were paid by Adiraj.
Option 1: Realization account debited Rs 2,000, credited bank account Rs 2,000
Option 2: Debited partner's capital account Rs 2,000 and credited bank account Rs 2,000
Option 3: Realization account debited Rs 2,000, credited partner's capital Rs 2,000
Option 4: None of the above
Correct Answer: Realization account debited Rs 2,000, credited partner's capital Rs 2,000
Solution : Answer = Realization account debited Rs 2000, credited partner's capital Rs 2000
When Realisation Expenses were Paid by any Partner on the Behalf of the firm. Realisation A/C Dr. To Partner's capital A/C. Hence, the correct option is 3.
Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following
Question : Realization expenses of Rs. 5,000 were to be borne by Pavit, a partner. However, it was paid by Hitesh, another partner. It was to be recorded in the books. The entry will be
Question : Choose the correct Journal entry with respect to loan by Amit (Partner) for the following cases at the time of the firm's dissolution: The loan by Amit (Partner) is Rs. 50,000 and the Balance in his Capital Account (credit) is Rs. 25,000.
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