Practicing Success
Based on following Balance Sheet of Tarnav and Manav as at 31st March 2022, answer question: Balance Sheet as at 31st March 2022
On that date the firm was dissolved on the following term: (i) Tarnav promised to pay Sanjay's loan and took over stock in trade at ₹4,000. |
Record journal entry relating to realisation expenses: |
Realisation A/c Dr. ₹1,500 Realisation A/c Dr. ₹1,500 Manav's Capital A/c Dr. ₹1,500 No need to record the journal entry |
No need to record the journal entry |
The correct answer is Option (4) - No need to record the journal entry. If a partner agrees to bear the realisation expenses and makes the payment themselves, no entry is required in the books since the partner has already borne the expenses personally. |