When realisation expenses are paid by the firm on behalf of a partner, which among the following will be debited? |
Realisation Account Partner's Capital Account Partner's Loan Account Expense Account |
Partner's Capital Account |
The correct answer is option 2- Partners capital account. When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to Partners capital A/c When the Realisation Expenses paid on behalf of partner by firm, the following journal entry is passed- |