Question : Realization expenses amounted to Rs.20,000 and were paid by the firm. Rs.8,000 were to be borne by the firm and the balance by Maruti, a partner. In this case, the account will be debited is
Option 1: Realisation account debited by Rs 8000
Option 2: Realisation account debited by Rs 12000
Option 3: Realization account debited by Rs 20,000
Option 4: None of the above
Correct Answer: Realisation account debited by Rs 8000
Solution : Answer = Realisation account debited by Rs 8000 When expenses of Rs 8,000 were to be borne by the firm and the balance of Rs 12,000 by partner(Maruti) but Rs 20,000 paid by the firm. The following journal entries are passed. Realisation a/c...Dr 8,000 Partner's capital a/c Dr 12,000 To Bank a/c 20,000. Hence, the correct option is 1.
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
Question : Realization expenses amounted to Rs.8,000 and were paid by partner X. In this case, the account will be credited :
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile