What Journal entry passed when a partner agrees to pay the realisation expenses on behalf of the firm?

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Solution

Realisation A/c Dr. (amount of expense)
To Partner's Capital A/c (amount of expense)
(Being realisation expenses borne by the partner on behalf of the firm)

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Similar questions

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.

For expenses of realisation when actual expenses are paid by the partner on behalf of the firm, realisation account is ___

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