Question

viru a partner was paid remuneration of ₹15000 and he was to meet all expenses. Actual expenses amounted to ₹20, 000 which were paid by the firm​

Answer 1

Answer:

As the agreement provides that partner is entitled to remuneration and his expenses will not be borne by the firm.

these expenses are to be adjusted to his remuneration.

Journal entry is

Realization a/c                                 Dr          15000

           to viru's capital a/c                                                        15000