Question

What appears in the realisation account if realisation expenses amount to ₹400 and partner agrees to take over all realisation expenses and was to be paid ₹500 by the firm for it?

Answer 1

Solution :-

Following journal entry will be done for this transaction.

    Realisation A/c                           Dr.               500

              To Partner's Capital A/c                                         500

    (Being realisation expenses paid to the partner)



      
  Dr.                                        Realisation Account                                 Cr.
___________________________________________________________        Particulars                         Amount                    Particulars           Amount     
___________________________________________________________

 To Partner's Capital A/c        500