Practicing Success
Read the following information and answer the questions that follow: |
Pass the journal entry for the dissolution expenses. |
Raina A/c Dr. ₹1000 Dissolution expenses A/c Dr. ₹1000 Bank A/c A/c Dr. ₹1000 Dissolution expenses A/c Dr. ₹1000 |
Raina A/c Dr. ₹1000 |
The correct ans is option 1 i.e. When a partner has agreed to bear the realisation expenses and payment of realisation expenses is made by the firm then the following entry is passed- Partner’s Capital A/c Dr. To Bank A/c |