Question : Ravi, a partner, is allowed a remuneration of Rs.15,000 for dissolution work and is to bear all expenses of realisation, which amounted to Rs.5,000, which were paid by the firm. In this case, finally, Ravi's capital account will be
Option 1: Debited by Rs 10,000
Option 2: Credited by Rs 10,000
Option 3: Debited by Rs 5000
Option 4: Credited by Rs 5000
Correct Answer: Credited by Rs 10,000
Solution : Answer = C redited by Rs 10,000 When partners get the commission. Realisation a/c Dr 15,000 To Ravi's capital a/c 15,000 Ravi's capital a/c Dr 5,000 To Bank a/c 5,000 Finally, the partner's capital a/c will be credited by Rs 10,000. Hence, the correct option is 2.
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 : 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 : 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
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