Question

How will you deal with the Realisation expenses of the firm of Rashim and Bindiya in the following cases: 1. Realisation expenses amounts to Rs 1,00,000, 2. Realisation expenses amounting to Rs 30,000 are paid by Rashim, a partner. 3. Realisation expenses are to be borne by Rashim for which he will be paid Rs 70,000 as remuneration for completing the dissolution process. The actual expenses incurred by Rashim were Rs 1,20,000."

Answer 1

1. Realisation a/c dr. 1,00,000

To cash/ bank a/c 1,00,000

2. Realisation a/c dr. 30,000

To Rashim's cap. a/c 30,000

3. no entry

Answer 2

Answer:

Explanation:

The journal entries will be -

1) Realisation A/c  Dr.  1,00,000

To Bank A/c  1,00,000

( Being the Realisation expenses paid)

2)  Realisation A/c  Dr.  30,000

To Rashim’s Capital A/c  30,000

(Being the Realisation expenses borne by Rashim)

3)  Realisation A/c  Dr.  70,000

To Rashim’s Capital A/c  70,000

( Being the Realisation expenses borne by Rashim and remuneration to him  for dissolution Rs 70,000)