Satish was appointed to look after the dissolution work for which he was allowed a remuneration of ₹14,000. He agreed to take over the investment of the book value of ₹11,000 towards payment of his full remuneration. (Investments have already been transferred to Realisation A/c) Journalize.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → No Entry
Satish’s remuneration would be recorded as Realisation A/c Dr. ₹14,000, To Satish’s Capital A/c ₹14,000. His taking over the investment in full payment of that remuneration would be recorded as Satish’s Capital A/c Dr. ₹14,000, To Realisation A/c ₹14,000.
The two entries cancel each other: the Realisation Account is debited and credited with the same amount, and so is Satish’s Capital Account. No cash moves, and the investment is already in the Realisation Account, so no entry is passed.
NCERT (2026-27 edition):
|
