If realisation expenses are paid by partner on behalf of the firm journal entry would be : |
Partner's capital A/c Dr Partner's capital A/c Dr Bank A/c Dr Realisation A/c Dr |
Realisation A/c Dr |
The correct answer is Option (4). For payment of realisation expenses- (a) When some expenses are incurred and paid by the firm in the process of realisation of assets and payment of liabilities: (b) When realisation expenses are paid by a partner on behalf of the firm: (c) When a partner has agreed to bear the realisation expenses: |