When realisation expenses are paid by the firm on behalf of a partner, which account will be debited:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Partner’s Capital Account
A realisation expense is the firm’s cost only when the firm bears it. If the firm pays an expense that a partner was meant to bear, the firm has spent money for him, so the amount is charged to that partner by debiting his capital account, not to the Realisation Account.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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