X, Y, and Z are partners who decided to dissolve their firm. Realization expenses were to be borne by Y for which he was to be given a remuneration of ₹10,000. Actual expenses were ₹12,000. How much amount will be transferred to Y's Capital A/c for it?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹10,000
Y has agreed to look after the realisation work for a fixed remuneration of ₹10,000 and to bear the realisation expenses himself.
Remuneration: Realisation A/c Dr. ₹10,000; To Y’s Capital A/c ₹10,000
Actual expenses of ₹12,000 paid by Y himself: no entry in the books of the firm
Amount credited to Y’s Capital A/c = ₹10,000
Whether the actual expenses are more or less than the agreed remuneration does not matter to the firm; the difference (₹2,000 here) is Y’s own loss.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
