On the dissolution of a partnership firm, to which account is the commission paid for the sale of an asset debited?

Correct answer: Realisation Account

Commission paid for selling an asset is a realisation expense arising from the dissolution. Therefore, it is debited to the Realisation Account, while the Bank or Cash Account is credited when the payment is made. It is not directly debited to the partners’ capital accounts unless a partner has personally borne the expense. Exam tip: Expenses connected with realisation, such as commission, legal charges and advertising expenses, are generally debited to the Realisation Account.