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
Option 1: Debited realisation account Rs 5,000, credited Pavit's capital account Rs 5,000
Option 2: Debited realisation account Rs 5,000, credited Bank account Rs 5,000
Option 3: Debited realisation account Rs 5,000 and credited Hitesh's capital account Rs 5,000
Option 4: Debited Pavit's capital account and credited Hitesh's capital account Rs 5,000
Correct Answer: Debited Pavit's capital account and credited Hitesh's capital account Rs 5,000
Solution : Answer = Debited Pavit's capital account and credited Hitesh's capital account Rs 5000
When Realisation Expenses were Bear by Partner and were Paid by another Partner. then the Entry will Be.
Bearing Partner's Capital A/C Dr.
To Bearing Partner's Capital AlC.
Hence, the correct option is 4.
