Question

On dissolution of a firm, a partner paid Rs. 1,500 for firm's realisation expenses. Which account will be debited ?
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Answer 1

Answer:

Firm's realisation expenses a/c debit .

Explanation:

Because the partner gives firms realisation expenses

Answer 2

On dissolution of a firm, if a partner pays for the firm's realization expenses, the Realization account will be debited.

• Dissolution of a firm means shutting down a business's operations. The firm has to pay off its liabilities and sell all the assets.
• The realization account shows the income and expenses of the business at the time of dissolution.
• In case a partner pays it on behalf of the firm, the realization account is debited and the partner's capital account is credited.