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Realisation expenses of ₹6000 were paid by Mohan personally and the firm did not reimburse him. What is the correct accounting treatment?

Answer and explanation

Correct answer: Realisation Account debit and Mohan Capital credit

The partner paid firm expenses so Realisation Account is debited and partner capital is credited. This creates a claim in favour of the partner.

Related tags

AccountancyRealisation ExpensesPartner PaymentRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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