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.

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Solution

Books of Rashim and Bindiya

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

1)

Realisation A/c

Dr.

1,00,000

To Bank A/c

1,00,000

(Realisation expenses paid)

2)

Realisation A/c

Dr.

30,000

To Rashim’s Capital A/c

30,000

(Realisation expenses borne by Rashim)

3)

Realisation A/c

Dr.

70,000

To Rashim’s Capital A/c

70,000

(Realisation expenses borne by Rashim and remuneration to him

for dissolution Rs 70,000)

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Realisation expenses 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 1,20,000. How will you deal with realisation expenses of the firm of Rashim and Bindiya-

Pass journal entries for the following transactions :

(i) Dissolution expenses amounted to Rs. 20,000. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner. The expenses were paid by Maruti.

(ii) Sudhir, a partner, was allowed a remuneration of Rs. 10,000 to carry out dissolution of the firm. He was to bear all expenses of realisation which amounted to Rs. 16,000 were paid by the firm.

(iii) Ravi, a partner, is allowed a remuneration of Rs. 15,000 for dissolution work and is to bear all expenses of realisation which amounted to Rs 5,000 were paid by the firm.

(iv) Anil, a partner, is paid remuneration of Rs. 20,000 for dissolution work. Realisation expenses amounted to Rs. 7,500 were paid by the firm.

(v) Vijay, a partner, paid realisation expenses of Rs 10,000 and these were to be borne by him.

Pass journal entries for the following transactions :

(i) Realisation expenses amounted to Rs. 5,000.

(ii) Realisation expenses amounted to Rs. 8,000 were paid by partner X.

(iii) Realisation expenses amounted to Rs. 10,000 were paid by the firm on behalf of a partner.

(iv) Realisation expenses amounted to Rs. 15,000 were paid by the firm. Mr. X, one of the partners, has to bear these expenses.

(v) Realisation expenses amounted to Rs. 20,000 were paid by the firm. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner.

Journalise the following transactions regarding realisation expenses

(a) Realisation expenses amounted to Rs. 2,500.

(b) Realisation expenses amounted to Rs. 3,000 were paid by Ashok, one of the partners.

(d) Amit, a partner was appointed to realize the assets, at a cost of Rs. 4,000.

The actual amount of realisation amounted to Rs. 3,000.

Give the necessary journal entries in each of the following alternative cases :

(i) Realisation expenses amounted to Rs. 500.

(ii) Realisation expenses paid by the firm amounted to Rs. 500 and the partner has to bear the realisation expenses.

(iii) 'A' one of the partners was to bear all the realisation expenses for which he was given a commission of 2% of net cash realised from dissolution. Cash realised from assets was Rs 25,000 and cash paid for liabilities amounted to Rs 5,000

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Books of Rashim and Bindiya Journal
	Particulars		L.F.	Amount Rs	Amount Rs
1)	Realisation A/c	Dr.		1,00,000
	To Bank A/c				1,00,000
	(Realisation expenses paid)

2)	Realisation A/c	Dr.		30,000
	To Rashim’s Capital A/c				30,000
	(Realisation expenses borne by Rashim)

3)	Realisation A/c	Dr.		70,000
	To Rashim’s Capital A/c				70,000
	(Realisation expenses borne by Rashim and remuneration to him for dissolution Rs 70,000)