Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. In this case.
(A) Realisation A/c is debited by Rs. 10,100
(B) Anubha's Capital A/c is credited by Rs. 9,600.
(C) Realisation A/c is debited by Rs. 13,600.
(D) Anubha's Capital is credited by Rs. 10100.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) and (D) only
Anubha agreed to bear expenses up to ₹6,000. → If the actual expenses are more than ₹6,000, the excess (₹1,600) must be borne by the firm.
So, the firm will bear: ₹1,600 (excess) and Anubha will get remuneration ₹8,500.
Realisation A/c to be debited with: ₹8,500+₹1,600 = ₹10,100
Anubha’s Capital A/c will be credited with her remuneration (since the firm owes her): 8,500+₹1,600
=₹10,100
Note: Anubha is a guarantor for Rs. 6,000: The firm will reimburse the excess paid by her: Rs. 7,600−Rs. 6,000=Rs. 1,600.
(i) Realisation A/c Dr. 8,500
To Anubha's Capital A/c
(Remuneration payable to Anubha) 8,500
(ii) Realisation A/c Dr.1,600
To Anubha's Capital A/c 1,600
(Dissolution expenses paid by Anubha on behalf of the firm)