When realisation expenses are paid by the firm on behalf of a partner, which account will be debited:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Partner's Capital Account
If the firm pays an expense that a partner was meant to bear, the payment is really on his behalf. It is not the firm’s cost, so it is charged to that partner: Partner’s Capital A/c Dr., To Bank A/c. The Realisation Account is debited only when the expenses are the firm’s own.
NCERT (2026-27 edition):
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