A firm is dissolved. building is auctioned, and auctioneer's commission is 1000. How will auctioneer's commission be treated?

Realisation Account
Dr.   Cr.
Particulars Amount (Rs) Particulars Amount (Rs)
Cash A/c (Auctioneer's commission) 1000    
       
       
       
 
Cash Account
Dr.   Cr.
Particulars Amount (Rs) Particulars Amount (Rs)
    Realisation A/c (Auctioneer's commission) 1000
       
       
       

  • 11

it will subtracted from buildings amount....

  • -6

noooooooo..........!!! do NOT subtract it from building amount!!! my teacher told me once that would not be advisable.... instead in realisation a/c ... in credit side write banka/c(building) - amount realised from building full! .... and it debit side write banka/c (auctioneer's commission) - 1000...... so show both independently..... thats how it is shown in marking scheme by cbse

  • 24
What are you looking for?