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 be
Option 1: Debited realization account Rs 18,000 and credited Q's capital account Rs 18,000
Option 2: Debited realization account Rs 18,000 and credited bank account Rs 18,000
Option 3: No entry required
Option 4: Debited bank account Rs 18,000 and credited partner's capital account Rs 18,000
Correct Answer: No entry required
Solution : Answer = No entry required
When Partners gets Commission then Realisation a/c will Be debited.
When Assets Recorded of Unrecorded Realised Realisation account will Be Credited.
In this case, Partners get Commission By transferred Asset.
So Realisation a/c will Be debited and Credited By the same amount, then No Entry is Required.
Hence, the correct option is 3.
