Question

If in case of dissolution of the partnership, there was no Workmen Compensation Fund and firm had to pay ₹ 3,000 as compensation to workers where will be this ₹ 3,000 recorded in the books of accounts?

Options

• Debit side of Realisation Account

• Credit side of Realisation Account

• Debit side of Partner's Capital Account

• Credit side of Partner's Capital Account

Answer 1

Debit side of Realisation Account

Explanation:

On the debit side of the Realisation Account, ₹ 3,000 will be paid to workers.