Question

dissolution expenses amounting to Rs 6000 were to be borne by partner X a d balance by the firm. Dissolution expenses amounted to Rs 15000 and entire amount was paid by the firm . Pass journal entry​

Answer 1

Explanation:

(a) Rahul's Capital A/C...... Dr. 15000

To Bank A/C 15000

(Being expenses borne by firm on behalf of Rahul)

(b) Realisation A/C....... Dr. 25000

To Ramesh's Capital A/C 25000

(Being the remuneration paid to Ramesh for bearing realisation expenses)

(c) Realisation A/C...... Dr. 2000

To Anuj's Capital A/C 2000

(Being the fixed amount of remuneration provided to Anuj to bear realisation expenses)