Question

The firm of Ravi and mohan was dissolved on 31.3.2013. According to the agreement,Ravi had agreed to undertake dissolution work for an agreed remuneration of Rs.2,000 and bear all realization expenses. Dissolution expenses were Rs. 1,500 and same were paid by the firm . Pass necessary Journal entry for payment of dissolution expenses .

Answer 1

Realisation   Dr.   2000             

To Cash a/c                    1500                   

Ravi                                500 

( firm paid 1500 as realization expenses and 500 due to Ravi)