Question : Vijay, a partner, paid realization expenses of Rs. 10,000 and these were to be borne by him. Vijay's capital account will be
Option 1: Debited by Rs 10,000
Option 2: Credited by Rs 10,000
Option 3: Debited by Rs 1000
Option 4: None of the above.
Correct Answer: None of the above.
Solution : Answer = None of the above. When the partner gets remuneration and agrees to bear all expenses of realisation and paid by him personally. "No entry" [Because this is not a business transaction] Hence, the correct option is 4.
Question : Realization expenses of Rs. 5,000 were to be borne by Pavit, a partner. However, it was paid by Hitesh, another partner. It was to be recorded in the books. The entry will be
Option 1: Debited realisation account Rs 5,000, credited Pavit's capital account Rs 5,000
Option 2: Debited realisation account Rs 5,000, credited Bank account Rs 5,000
Option 3: Debited realisation account Rs 5,000 and credited Hitesh's capital account Rs 5,000
Option 4: Debited Pavit's capital account and credited Hitesh's capital account Rs 5,000
Question : Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of Rs. 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses Rs. 16,000 were paid by Vijay, another partner on behalf of Jay. The entry will be
Option 1: Debited Jay's capital Rs 16,000 and credited Vijay's capital account Rs 16,000
Option 2: Debited realisaton account Rs 15,000 and credited Jay's capital account Rs 15,000
Option 3: Both 1 and 2
Option 4: None of these
Question : Realization expenses amounted to Rs.20,000 and were paid by the firm. Rs.8,000 were to be borne by the firm and the balance by Maruti, a partner. In this case, the account will be debited is
Option 1: Realisation account debited by Rs 8000
Option 2: Realisation account debited by Rs 12000
Option 3: Realization account debited by Rs 20,000
Option 4: None of the above
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile