Practicing Success
On dissolution of a firm, a partner paid Rs.1,000 for the firm's realisation expenses on behalf of the firm. Which account will be debited on passing journal entry regarding this? |
Realisation Account Cash account Partner's Capital Account Profit & Loss Account |
Realisation Account |
The correct answer is option 1- Realisation Account. When realisation expenses are paid by a partner on behalf of the firm: So, realisation account is debited if on the dissolution of a firm, a partner paid Rs.1,000 for firm's realisation expenses on behalf of the firm. |