When realisation expenses are paid by th

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to :

Options:

Realisation Account

Partner's Capital Accounts

Sundry Debtors Account

Cash account

Correct Answer:

Partner's Capital Accounts

Explanation:

If payment of realisation expenses is made by the firm on behalf of partner:
Partner’s Capital A/c Dr.
To Bank A/c