Question : Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of Rs. 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses Rs. 16,000 were paid by Vijay, another partner on behalf of Jay. The entry will be
Option 1: Debited Jay's capital Rs 16,000 and credited Vijay's capital account Rs 16,000
Option 2: Debited realisaton account Rs 15,000 and credited Jay's capital account Rs 15,000
Option 3: Both 1 and 2
Option 4: None of these
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2 When Partner gets Commission Realisation AIC Dr 15000 To Jay's Capital A/C 15000
When Realisation Exp was Paid by another partner on behalf of Bearing Parther then Entry would be Bearing Partner's Capital A/c Dr To Paying Partner's Capital A/c. Hence, the correct option is 3.
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 : Q, a partner, was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs. 18,000. Q agreed to take over stock worth Rs. 18,000 as his remuneration. The stock had already been transferred to the Realisation Account. The entry will
Question : Sudhir, a partner, was allowed a remuneration of Rs. 10,000 to carry out dissolution of the firm. He was to bear all expenses of realisation which amounted to Rs. 16,000 were paid by the firm. In this case partner's capital account will be debited by ------------
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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