"A partner has agreed to undertake the dissolution work and agreed to pay and bear the realisation expenses himself".
Choose the correct entry for the given case.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → No entry is required
When a partner agrees to bear the realisation expenses and pays them himself, no money of the firm is spent and the firm owes him nothing for it, so no entry is passed in the firm’s books.
Option (1) Partner's Capital A/c Dr To Bank A/c — Incorrect. This entry is made when the firm pays expenses that the partner has to bear.
Option (2) Realisation A/c Dr To Partner's Capital A/c — Incorrect. This entry is made when a partner pays the firm’s expenses on its behalf, or is paid a remuneration for doing the work.
Option (3) No entry is required — Correct.
Option (4) Realisation A/c Dr To Bank A/c — Incorrect. This entry is made when the firm pays and bears the expenses itself.
NCERT (2026-27 edition):
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