Question

The firm of Ravi and Mohan was dissolved on 31.3.2024. According to the agreement, Ravi had agreed to undertake the dissolution work for an agreed remuneration of ₹ 2,000 and bear all realisation expenses. Dissolution expenses were ₹ 1,500 and the same were paid by the firm. Pass necessary Journal Entry for the payment of dissolution expenses.

Answer 1

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
(i)	Realisation A/c    ...Dr.		2,000	-
	To Ravi’s Capital A/c		-	2,000
	(Being Remuneration due to Ravi)
(ii)	Ravi’s Capital A/c    ...Dr.		1,500	-
	To Bank A/c		-	1,500
	(Being Realisation expenses paid on behalf of Ravi)