Practicing Success
What is total amount paid to a partner if a partner is paid remuneration and also agreed amount as realisation expenses but realisation expenses came more than the agreed amount, at the time of dissolution of partnership firm? |
Remuneration Remuneration + Agreed amount of realisation expenses Remuneration + Actual realisation expenses Agreed amount of realisation expenses |
Remuneration + Agreed amount of realisation expenses |
The correct answer is option 2- Remuneration + Agreed amount of realisation expenses. Remuneration & Agreed amount of realisation expenses paid to partner. The following journal entry is passed for agreed remuneration to such partner who agrees to undertake the dissolution work- * Agreed amount is paid to partner irrespective whether realisation expenses are more or less than the agreed amount. |