Partnership

Dissolution

Medium

common

Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. What will be the journal entry for remuneration payable to Anubha?

(A) Realisation A/c is debited by 8,500

(B) Anubha's Capital A/c is credited by 8,500.

(C) Realisation A/c is debited by13,600.

(D) Anubha's Capital is credited by13,600.

Choose the correct answer from the options given below:

(A) and (B) only

(B) and (D) only

(A), (B), (C) and (D)

✅ Correct Option: 1

Given:

Remuneration to Anubha: Rs. 8,500
Agreed to bear dissolution expenses: Up to Rs. 6,000
Actual expenses paid: Rs. 7,600

The question asks specifically for the journal entry for remuneration payable to Anubha.

Remuneration is the payment for services rendered in carrying out dissolution work. This is treated as a charge against the Realisation Account.

Journal Entry for Remuneration:

Realisation A/c Dr. 8,500

To Anubha's Capital A/c 8,500

The dissolution expenses are handled separately. Since Anubha agreed to bear expenses up to Rs. 6,000 but actual expenses were Rs. 7,600, the excess amount of Rs. 1,600 (7,600 - 6,000) will be borne by the firm and credited to Anubha separately. However, this is not part of the remuneration entry.

The remuneration entry only deals with Rs. 8,500, which means:

Statement (A) is correct - Realisation A/c is debited by 8,500
Statement (B) is correct - Anubha's Capital A/c is credited by 8,500
Statement (C) is incorrect - The debit is 8,500, not 13,600
Statement (D) is incorrect - The credit is 8,500, not 13,600

Correct Answer: Option 1 - (A) and (B) only

2026: 31 May Shift 1

Which of the following are credited to the Realisation Account?

A. Assets taken over by a partner

B. Liabilities paid by the firm

C. Sale of assets

D. Realisation of Unrecorded assets

Choose the correct answer from the options given below:

2025: 29 May Shift 2

Which of the following will lead to dissolution of partnership firm by agreement?

2025: 13 May Shift 1

According to Section ........... of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm.

2025: 29 May Shift 2

Dissolution of a partnership firm may be ordered by the court on the following grounds:

(A) when a partner becomes insane.

(B) when a partner becomes permanently incapable of performing his duties as partner.

(D) when it is regarded just and equitable by the court.

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Profit & Loss Adjustment A/c is not prepared in which of the following case?

2025: 27 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Compulsory Dissolution	(I) A partner persistently commits breach of partnership agreement.
(B) Happening of contingencies	(II) Death of a partner
(C) Dissolution by Court	(III) According to contract between the partners.
(D) Dissolution by agreement	(IV) Business becomes illegal

Choose the correct answer from the options given below:

(A) - (IV), (B) - (I), (C) - (III), (D) - (II)
(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Solution

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