Question

Sankar,who was to took after the dissolution agreed to accept Rs 900 towards realisation expenses. He actually incurred Rs 1,200 as realisation expenses. Realisation expenses should be debited with......for expenses.
2 points
Rs 300
Rs 900
Rs 1,200
Rs 2,100
​

Answer 1

Answer:

Rs 300fghhvxddfgvcxxxxxxdx

Answer 2

(2) Rs. 900

Realization expenses are incurred when the company decides to dissolve its business in the process of dissolution. When the company sold its assets and pay off its liabilities. In this process, some expenses get incurred and these expenses are known as realization expenses. Sometimes, the firm pays a chosen partner a certain sum of money to bear the expenses.

In this question, Sankar agreed to accept ₹900 towards the realization expenses. But he incurred ₹1200 as realization expenses. Therefore, the realization expenses account should be debited with ₹900 for expenses as that is the amount paid by the firm.