Question

Mohan and Kanwar are partners in a firm. Their firm was dissolved on 1.1.2024. Mohan was assigned the work of dissolution. For this work Mohan was to be paid ₹ 500. Mohan paid dissolution expenses of ₹ 400 from his own pocket. Will any Journal Entry be passed for ₹ 400 paid by Mohan? If yes, pass the entry. If no, give reason.

Answer 1

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
(i)	Realisation A/c      ...Dr.		400	-
	To Mohan’s Capital A/c		-	400
	(Being Dissolution expenses paid by Mohan on firm’s behalf)