Question:
On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses \(₹17,000\) were paid by a debtor of \(₹75,000\) on behalf of the firm. The remaining amount was received from him along with interest of \(₹2,000\) for delayed payment. Realisation Account will be ___________ by ___________.
On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses \(₹17,000\) were paid by a debtor of \(₹75,000\) on behalf of the firm. The remaining amount was received from him along with interest of \(₹2,000\) for delayed payment. Realisation Account will be ___________ by ___________.
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Expenses paid by third party → debit Realisation A/c.
Updated On: Jul 8, 2025
- debited, \(₹17,000\)
- credited, \(₹50,000\)
- debited, \(₹77,000\)
- credited, \(₹60,000\)
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The Correct Option is A
Solution and Explanation
Realisation expense paid by debtor is treated as payment on behalf of firm, hence Realisation A/c is debited.
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