Ram, a partner, has been assigned the responsibility for realization of assets and settlement of liability for which he will be given remuneration of - Accountancy MCQ CUET Accountancy 2025 22 May Shift 2 2026 | ExamTest.live

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Ram, a partner, has been assigned the responsibility for realization of assets and settlement of liability for which he will be given remuneration of ₹ 10,000. He has to bear all the realization expenses. Actual realization expenses are ₹ 12,000. The Journal Entry will be:

Solution & Step-by-step Explanation

Since Ram is given a fixed remuneration of ₹ 10,000 to complete the realization work and he has agreed to bear all actual expenses, any actual expenses incurred (₹ 12,000) are his personal liability. The firm is only concerned with recording the fixed agreed remuneration liability.The entry passed by the firm is: Realisation A/c Dr. 10, 000 To Ram’s Capital A/c 10, 000

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Ram, a partner, has been assigned the responsibility for realization of assets and settlement of liability for which he will be given remuneration of ₹ 10,000. He has to bear all the realization expenses. Actual realization expenses are ₹ 12,000. The Journal Entry will be:

Realisation A/C.....Dr. 10,000To Ram's Capital A/C 10,000

Realisation A/C.....Dr. 12,000To Ram's Capital A/C 12,000

Realisation A/C.....Dr. 10,000To Bank A/C 10,000

Realisation A/C.....Dr. 12,000To Bank A/C 12,000

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