Practicing Success
What is the journal entry at the time of dissolution of partnership firm if realisation expenses of ₹7500 were borne by firm but paid by partner Ajay? |
Realisation A/c Dr. ₹7500 Ajay’s Capital A/c Dr. ₹7500 No entry passed Revaluation A/c Dr. ₹7500 |
Realisation A/c Dr. ₹7500 |
The expenses of dissolution are borne by the firm but paid by the partner on behalf of firm. Therefore, Ajay's capital account is credited. |