sudhir a partner was allowed a remuneration of 10000 to carry out the dissolution process.He was to bear all expenses of realisation ehich amounted to 16000 were paod by the firm.

Hello there,

In the scenario you've described, where Sudhir, a partner, is allowed a remuneration of Rs. 10,000 to carry out the dissolution process, and he was to bear all expenses of realization (amounting to Rs. 16,000) but these were paid by the firm, the accounting treatment would be as follows:

1. Sudhir's Remuneration:

   • The firm will record the remuneration of Rs. 10,000 as an expense.
   • Entry :
     • Dr. Profit and Loss Account Rs. 10,000
     • Cr. Sudhir's Capital Account Rs. 10,000
       
       

2. Expenses of Realization:

• Since the firm paid the expenses of Rs. 16,000 that Sudhir was supposed to bear, the amount will be recorded as an expense in the firm’s books, and the partner’s capital account will be debited for the amount.
  
  
• Entry :
  • Dr. Realization Account Rs. 16,000
  • Cr. Firm’s Cash/Bank Account Rs. 16,000
    
    

After these entries, Sudhir’s capital account will reflect the remuneration owed to him and any liabilities he has incurred or been relieved of (in this case, the Rs. 16,000 expense).

This way, the firm's accounts and Sudhir's capital account will be appropriately adjusted during the dissolution process.

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