Question

Journalise the following transactions regarding Realisation expenses:
[a] Realisation expenses amounted to Rs 2,500.
[b] Realisation expenses amounting to Rs 3,000 were paid by Ashok, one of the partners.
[c] Realisation expenses Rs 2,300 borne by Tarun, personally.
[d] Amit, a partner was appointed to realise the assets, at a cost of Rs 4,000. The actual amount of Realisation amounted to Rs 3,000.

Answer 1

                                         Journal Entry

	Particulars	L.F.	Amount (Rs.)	Amount (Rs.)
a.	Realisation A/c                  Dr.            To Bank A/c (Realisation expenses paid)		2,500	2,500
b.	Realisation A/c                 Dr.   To Ashok’s Capital A/c (Realisation expenses paid by Ashok)		3,000	3,000
c.	No entry, as all Realisation expenses are borne personally by Tarun		-	-
d.	Realisation A/c                  Dr.     To Amit’s Capital A/c  (Realisation expenses paid to Amit)		4,000	4,000