Practicing Success
A partner has agreed to undertake the dissolution work and agreed to pay and bear the realisation expenses himself. Choose the correct entry for the given case. |
Partner's Capital A/c Dr. Realisation A/c Dr. No entry is required Realisation A/c Dr. |
No entry is required |
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: |