At the time of Dissolution , a partner Shilpa agreed to bear the realisation expenses. Firm paid her Rs 5,000, although actual expenses were of Rs 4000. How much amount will be debited to Realisation A/c?
Answer & explanation
Correct answer: option 1
5,000 were paid by the firm for realisation expenses. The amount that is agreed to pay or paid is considered the amount of realisation expenses not the actual amount.