How will You Deal With the Realisation Expenses Of the Firm of Rashim And Bindiya In The Following Cases ??? Solution

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Q.6. 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.

SOLUTION

Books of Rashim and Bindiya

Journal

DateParticularsL.F.
Amount
(Dr.)
Amount
(Cr.)
1.Realisation A/cDr.1,00,000
    To Bank A/c1,00,000
(Being Realisation A/c paid)
2.Realisation A/cDr.30,000
    To Rashim’s Capital A/c30,000
(Being Realisation A/c paid by partner Rashim)
3.Realisation A/cDr.70,000
   To Rashim’s Capital A/c70,000
( Realisation expenses are to be borne by Rashim for which he will be paid Rs 70,000)

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