Question

What Journal Entry will be passed on dissolution of a partnership firm when a partner agreed to bear the dissolution expenses for ₹ 10,000?

Actual expenses paid by partner were ₹ 15,000.

Options

• Realisation A/c    Dr.     15,000
      To Partner's Capital A/c       15,000

• Realisation A/c     Dr.    10,000
     To Partner's Capital A/c        10,000

• Realisation A/c     Dr.         5,000
  Dissolution Exp. A/c  Dr.  10,000
     To Bank A/c                               15,000

• No Entry

Answer 1

Realisation A/c     Dr.    10,000
   To Partner's Capital A/c        10,000