Vansh, Ansh and Saransh are partners and on 31st March 2025, they decided to dissolve the firm and Vansh was appointed to look after the dissolution work for which he was allowed a remuneration of Rs. 14,000. He agreed to take over investment of the book value of Rs. 13,000 towards payment of his remuneration. Investments have already been transferred to a realisation account. Choose the correct journal entry.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → No journal entry to be passed
A partner's remuneration for dissolution work is normally recorded as Realisation A/c Dr. To Partner's Capital A/c, and an asset he takes over as Partner's Capital A/c Dr. To Realisation A/c. Here Vansh takes the investments towards payment of his remuneration, so the two would cancel out: the asset is his payment, and no cash moves between him and the firm.
The investments are already in the Realisation Account, and the remuneration is settled by handing them over. So no journal entry is passed for it. The Rs. 1,000 gap between the remuneration and the book value of the investments makes no difference, because Vansh has agreed to accept the investments in place of his remuneration.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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