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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


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

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.

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