Partner S was appointed to look after the dissolution work for which she was allowed a remuneration of ₹15,000. She agreed to bear dissolution expenses. Actual dissolution expenses paid by her amounted to ₹11,800. What will be the journal entry for this at the time of dissolution of partnership firm?

Realisation A/c Dr.         ₹15,000
   To S's Capital A/c            ₹15,000
(Remuneration allowed to S for looking after dissolution work)

The correct answer is option 2-
Realisation A/c Dr.         ₹15,000
   To 's Capital A/c            ₹15,000
(Remuneration allowed to S for looking after dissolution work)

For agreed remuneration to such partner who agrees to undertake the dissolution work-
Realisation A/c Dr.
   To Partner’s Capital A/c
(Being remuneration and realisation expenses payable to partner)

So, here S will be paid 15,000 by the firm. So, the correct answer is option 2.