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Asset sold for ₹90000. Selling expenses of ₹4000 were borne by the buyer. What entry for expenses is made by the firm in Realisation Account?

Answer and explanation

Correct answer: No expense entry

Expenses borne by the buyer are not expenses in the firm's books. The firm records only the actual receipt.

Related tags

AccountancySelling ExpensesAsset SaleRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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