Question : Anil, a partner, is paid a remuneration of Rs.20,000 for dissolution work. Realisation expenses amounted to Rs.7,500 and were paid by the firm. The realization account will be debited by
Option 1: Rs 27,500
Option 2: Rs 20,000
Option 3: Rs 7,500
Option 4: None of the above
Answer (1)
19th Jan, 2024
Correct Answer: Rs 27,500
Solution :
Answer =
Rs 27,500
When partner's get remuneration
Realisation a/c Dr 20,000
To Anil's capital a/c 20,000
When expenses paid
Realisation a/c Dr 7500
To Anil's capital a/c 7500
Final entry
Realisation a/c Dr 27,500
To Partner's capital a/c 27,500
Hence, the correct option is 1.
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