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:
Furniture of Rs. 70,000 was sold for Rs. 68,000 by auction and the auctioneer commission amounted to Rs. 2,000. The realisation account will be debited/credited by
Option 1: Debited by Rs 68,000
Option 2: Debited by Rs 2,000 and credited by Rs 68,000
Option 3: Credited by Rs 6,6000
Option 4: Both 2 and 3
Correct Answer: Both 2 and 3
Solution :
Answer =
Both 2 and 3
When assets realised
Bank a/c Dr 68,000
To realisation a/c 68,000
(for assets realised)
Realisation a/c Dr 2,000
To Bank a/c 2,000
(for commission paid)
Hence, the correct option is 4.
