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1 realisation expenses ₹8000 we're paid by Rana a partner
2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense?
1 realisation expenses ₹8000 we're paid by Rana a partner
2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense?
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Journal entries 1 realisation expenses ₹8000 we're paid by Rana a part...
Understanding Realisation Expenses
Realisation expenses are costs incurred during the winding up of a partnership, which need to be properly recorded in the partnership accounts. Here's how to account for the expenses related to partners Rana and Dhana.
1. Realisation Expenses Paid by Rana
- Expense Amount: ₹8000
- Transaction: This expense was directly paid by Rana, a partner.
- Journal Entry:
- Debit: Realisation Account ₹8000
- Credit: Rana's Capital Account ₹8000
- Implication: Rana bears this cost, which reduces his capital in the partnership.
2. Realisation Expenses Paid by the Firm on Behalf of Dhana
- Expense Amount: ₹10000
- Transaction: The firm paid this amount on behalf of Dhana.
- Journal Entry:
- Debit: Realisation Account ₹10000
- Credit: Dhana's Capital Account ₹10000
- Implication: Although the firm paid the expense, Dhana is responsible for this amount. His capital account will reflect this deduction, indicating that he needs to reimburse the firm.
Conclusion
- Responsibility of Partners: Both Rana and Dhana must bear the realisation expenses, which are charged to their respective capital accounts.
- Final Consideration: It is essential to maintain accurate records and ensure that each partner's financial obligations are clearly documented during the realisation process.
This approach ensures transparency and accountability among partners during the dissolution of the partnership.
Realisation expenses are costs incurred during the winding up of a partnership, which need to be properly recorded in the partnership accounts. Here's how to account for the expenses related to partners Rana and Dhana.
1. Realisation Expenses Paid by Rana
- Expense Amount: ₹8000
- Transaction: This expense was directly paid by Rana, a partner.
- Journal Entry:
- Debit: Realisation Account ₹8000
- Credit: Rana's Capital Account ₹8000
- Implication: Rana bears this cost, which reduces his capital in the partnership.
2. Realisation Expenses Paid by the Firm on Behalf of Dhana
- Expense Amount: ₹10000
- Transaction: The firm paid this amount on behalf of Dhana.
- Journal Entry:
- Debit: Realisation Account ₹10000
- Credit: Dhana's Capital Account ₹10000
- Implication: Although the firm paid the expense, Dhana is responsible for this amount. His capital account will reflect this deduction, indicating that he needs to reimburse the firm.
Conclusion
- Responsibility of Partners: Both Rana and Dhana must bear the realisation expenses, which are charged to their respective capital accounts.
- Final Consideration: It is essential to maintain accurate records and ensure that each partner's financial obligations are clearly documented during the realisation process.
This approach ensures transparency and accountability among partners during the dissolution of the partnership.
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Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense?
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Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense?.
Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Journal entries 1 realisation expenses ₹8000 we're paid by Rana a partner2 realisation expenses ₹10000 paid by firm on behalf of dhana (a partner), he has to bear realisation expense?.
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