Question

How will you deal with the Realisation expenses of the firm of Rashim and Bindiya in the following cases
1. Realisation expenses amounts to Rs 1,00,000,
2. Realisation expenses amounting to Rs 30,000 are paid by Rashim, a partner.
3. Realisation expenses are to be borne by Rashim for which he will be paid Rs 70,000 as remuneration for completing the dissolution process. The actual expenses incurred by Rashim were Rs 1,20,000.

Answer 1

Books of Rashim and Bindiya
Journal Entries

	Particulars	L.F.	Amount (Rs.)	Amount (Rs.)
1)	Realisation A/c                  Dr.       To Bank A/c (Realisation expenses paid)		100,000	100,000
2)	Realisation A/c                   Dr.     To Rashim’s Capital A/c (Realisation expenses borne by Rashim)		30,000	30,000
3)	Realisation A/c                   Dr.     To Rashim’s Capital A/c (Realisation expenses borne by Rashim and remuneration to him for dissolution Rs 70,000)		70,000	70,000