"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.

No entry is required

The correct answer is Option (3) - No entry is required.

When a partner has agreed to bear the realisation expenses:

(i) if payment of realisation expenses is made by the firm
Partner’s Capital A/c Dr.
    To Bank A/c

(ii) if the partner himself pays the realisation expenses, no entry is required.