Journalise the following transactions regarding Realisation expenses:

[a] Realisation expenses amounted to Rs 2,500.

[b] Realisation expenses amounting to Rs 3,000 were paid by Ashok, one of the partners.

[c] Realisation expenses Rs 2,300 borne by Tarun, personally.

[d] Amit, a partner was appointed to realise the assets, at a cost of Rs 4,000. The actual amount of Realisation amounted to Rs 3,000.

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Solution

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

(a)

Realisation A/c

Dr.

2,500

To Bank A/c

2,500

(Realisation expenses paid)

(b)

Realisation A/c

Dr.

3,000

To Ashok’s Capital A/c

3,000

(Realisation expenses paid by Ashok)

(c)

No entry, as all Realisation expenses are borne personally by Tarun

(d)

Realisation A/c

Dr.

4,000

To Amit’s Capital A/c

4,000

(Realisation expenses paid to Amit)

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Similar questions

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.

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.

Q. Pass Journal entries for the following:
(a) Realisation expenses amounted to Rs. 10,000 were paid on the behalf of Alok, a partner, with whom it was agreed at Rs. 7,500.
(b) Realisation expenses amounted to Rs. 5,000 It was agreed that the firm will pay Rs. 2,000 and balance by Ravinder, a Partner.
(c) Dissolution expenses amounted to Rs. 10,000 were paid by Amit, a partner, on behalf of the firm.

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

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.

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Journal
	Particulars		L.F.	Amount Rs	Amount Rs
(a)	Realisation A/c	Dr.		2,500
	To Bank A/c				2,500
	(Realisation expenses paid)

(b)	Realisation A/c	Dr.		3,000
	To Ashok’s Capital A/c				3,000
	(Realisation expenses paid by Ashok)

(c)	No entry, as all Realisation expenses are borne personally by Tarun

(d)	Realisation A/c	Dr.		4,000
	To Amit’s Capital A/c				4,000
	(Realisation expenses paid to Amit)