Which account is debited on payment of dissolution expenses? (Answer in one sentence)
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REALISATION ACCOUNT WILL BE DEBITED
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=) The "Realisation Account" is debited on payment of dissolution expenses .
Realisation account is set up at the season of disintegration of a firm to know the benefit/misfortune at the season of disintegration of the firm. Every one of the benefits with the exception of money or bank are exchanged to the charge side of acknowledgment account. In the event that any benefit has a comparing arrangement or hold that is exchanged to the credit side of acknowledgment account.
Correspondingly all outside liabilities like leasers and advances and so on are exchanged to the credit side of realisation account .
=) The "Realisation Account" is debited on payment of dissolution expenses .
Realisation account is set up at the season of disintegration of a firm to know the benefit/misfortune at the season of disintegration of the firm. Every one of the benefits with the exception of money or bank are exchanged to the charge side of acknowledgment account. In the event that any benefit has a comparing arrangement or hold that is exchanged to the credit side of acknowledgment account.
Correspondingly all outside liabilities like leasers and advances and so on are exchanged to the credit side of realisation account .
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