Question

Pass journal entries for the following:
(a) Realisation expenses amounted to ₹ 10,000 were paid by the firm on behalf of Alok, a partner, with whom it was agreed at ₹ 7,500.
(b) Realisation expenses amounted to ₹ 5,000. It was agreed that the firm will pay ₹ 2,000 and balance by Ravinder, a partner.
(c) Dissolution expenses amounted to ₹ 10,000 were paid by Amit, a partner, on behalf of the firm.

Answer 1

Answer:

As per the journal,

(A) An amount of Rs. 7500 has been debited from the Realisation account and it has been credited to Alok's Capital A/c.

This is being realisation allowed to alok capital A/c.

An amount of Rs. 10000 has been debited from the Alok's capital account and it has been credited to Bank A/c

This is being expenses paid by the firm on behalf of Alok.

(B) An amount of Rs. 5000 has been debited from the Realisation account and it has been credited to the Ravinder's Capital A/c  and to the bank A/c of Rs. 3000 and Rs. 2000 respectively.

This is being the realisation expense paid.

(C) An amount of Rs. 10000 has been debited from the Realisation account and it has been credited to Amit's Capital A/c

This is being the remuneration allowed to Anuj Capital Account.

An amount of Rs. 5000 has been debited from the Anuj's capital account and it has been credited to Bank A/c.

This is being the realisation expense paid by Amit on behalf of the firm.