Question

(a) Realisation expenses of 10,000 were to be met by Mohan, a partner, but were paid by the firm. (b) Mahesh, a partner, was paid remuneration of 25,000 and he was to meet all expenses. (c) Suresh, a partner, was paid remuneration of 20,000 and he was to meet all expenses. Firm paid an expense of 5,000. make journal entries​

Answer 1

Answer:

a) Mohan A/C dr 10000

To cash a/c. 10000

b) Realisation A/c dr 25000

To Mahesh capital a/c 25000

c) Realisation A/c dr 20000

To suresh capital A/c. dr 20000

Suresh A/c dr 5000

To Bank A/c 5000

Answer 2

Following are the journal entries for this question:

(a) Mohan a/c  dr.  10,000

                         to cash a/c   10,000

( being realization expenses of ₹10,000 to be met by Mohan, but paid by the firm)

(b) Realization a/c   dr.  25,000

                               to Mahesh's capital a/c  25,000

( being realization expenses paid by Mahesh who was paid remuneration to bear the expenses)

(c) (i) Realization a/c   dr.  20,000

                                 to Suresh's capital a/c   20,000

( being remuneration of ₹20,000 paid by the firm to Suresh to bear realization expenses)

(ii) Suresh a/c  dr.   5,000

                        to bank a/c    5,000

( Being expense of ₹5,000 paid by the firm, when Suresh was to bear the expenses)