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Q.

What journal entry will be passed on dissolution of a partnership from when a partner agreed to bear the dissolution expenses for Rs.10,000/-? Actual expenses paid by partner were Rs.15,000/-.

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a

 Realisation account                                  Dr        15,000/-

         To partners capital account                                                15,000/-

b

Realisation account                                  Dr        10,000/-

            To partners capital account                                                 10,000/-

c

Realisation account                                  Dr          5,000/-

Dissolution Expenses account                 Dr        10,000/-

            To Bank account                                                                   15,000/-

d

No Entry

answer is B.

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Detailed Solution

Realisation account                                  Dr        10,000/-

            To partners capital account                                                 10,000/-

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What journal entry will be passed on dissolution of a partnership from when a partner agreed to bear the dissolution expenses for Rs.10,000/-? Actual expenses paid by partner were Rs.15,000/-.