Question

​A was entrusted the work of supervising the dissolution at a cost of Rs. 900. He actually paid Rs. 1,400 as expenses. Journal entry

Answer 1

Answer:

realisation a/c   dr      900

      to a'capital a/c             900

Explanation:

actual cost will not matter.the amount 'decided' is always taken in dissolution' expenses.

also after he did the work the company will pay him back.so his capital ac iss cr and its an expense for co,so realisation is dr