Expenses incurred on a dissolution of a partnership firm.
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Solution
Realisation Expenses
Explanation: Realisation Expenses are the expenses incurred on the dissolution of a firm. These expenses belong to the firm and hence, they should be paid by the firm. However, sometimes these expenses are paid by the firm on behalf of a partner. In such cases, the Concerned Partner’s Capital/Current Account is debited.
Concept: Dissolution of Partnership Firm
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