Question : Realisation expenses of Rs 10,000 were paid by the firm. Choose the correct journal entry.
Option 1: Realisation A/c ...Dr. 10,000 To Cash/BankA/c 10,000
Option 2: Realisation A/c ...Dr. 10,000 To Concerned Partner's Capital A/c 10,000
Option 3: Concerned Partner's Capital A/c Dr. 10,000 To Cash/Bank A/c 10,000
Option 4: Cash/BankA/c..Dr. 10,000 To Realisation A/c 10,000
Correct Answer: Realisation A/c ...Dr. 10,000 To Cash/BankA/c 10,000
Solution : Answer = Realisation A/c ...Dr. 10,000 To Cash/BankA/c 10,000 When realization expenses are paid by the firm, then the realization account will be debited and credited to the cash account. Hence, the correct option is 1.
Question : Realisation Expenses, 15,000 were paid by the firm on behalf of a partner. The Journal Entry passed will be:
Question : Choose the incorrect journal entry. When Present Adjusted Capital (after adjustments) is more than the Proportionate Capital:
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