Anil and Shobha are partners in a firm, and on 31st March 2020, they decided to dissolve the firm. Shobha was appointed to look after the dissolution work for which she was allowed a remuneration of Rs. 15,000. She agreed to bear dissolution expenses. Actual dissolution expenses paid by her amounted to Rs. 11,800. Choose the correct journal entry.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Realisation A/c Dr. 15,000, To Shobha’s Capital A/c 15,000
Two things happen here, and only one of them is recorded.
Shobha is allowed Rs. 15,000 for doing the dissolution work. It is a cost of winding up, so Realisation A/c is debited and Shobha’s Capital A/c credited with Rs. 15,000.
She agreed to bear the expenses and paid them herself. Nothing of the firm’s went out and the firm owes her nothing for them, so no entry is passed for the Rs. 11,800.
Her remuneration stays Rs. 15,000 whatever the expenses come to: she keeps the Rs. 3,200 saved, and would have borne any excess.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
|
