Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

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?

Options:

₹5,000

₹4,000

₹1,000

None of these

Correct Answer:

₹5,000

Explanation:

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.