Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Realisation Expenses, ₹15,000 were paid by the firm on behalf of a partner. What will be the Journal Entry?

Options:

Realisation A/c Dr.   ₹15,000
     To Cash/Bank A/c      ₹15,000

Realisation A/c Dr. ₹15,000
   To Concerned Partner’s Capital A/c ₹15,000

Concerned Partner’s Capital A/c Dr. ₹15,000
                  To Cash/Bank A/c                    ₹15,000

Cash/Bank A/c Dr.      ₹15,000
      To Realisation A/c           ₹15,000

Correct Answer:

Concerned Partner’s Capital A/c Dr. ₹15,000
                  To Cash/Bank A/c                    ₹15,000

Explanation:

If realisation expenses were paid by the firm on the behalf of partner then those expenses will be Debited to concerned partner's capital account.