V partner was appointed to look after the dissolution process of partnership firm for which she was given a remuneration of ₹12,000. What will be the journal entry for recording this?
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
Realisation A/c Dr. ₹12,000
To V's Capital A/c ₹12,000
(Remuneration given to V)
The journal entry for agreed remuneration to such partner who agrees to undertake the dissolution work-
Realisation A/c Dr.
To Partner’s Capital A/c
So, here V look after the dissolution process of partnership firm for which she was given a remuneration of ₹12,000. So, journal entry for this-
Realisation A/c Dr. ₹12,000
To V's Capital A/c ₹12,000
(Remuneration given to V)