in dissolution when realisation expenses are to be borne by a partner for which he is given commission amount is given and the actual expenses are also given the comission amount will be debited to realisation a/c and how will the actual expenses be shown?

partner's capital a/c

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ACTUAL EXPENSES SHOWN IN PARTNERS CAPITAL A/C

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whenevr a partner is entitled to borne realisation exp. then he is always given a commission to do so. 

Note :-

borne is treated as personal exp. of a partner whereas takeover is a sort of bearing the realstion exp. then commission is not given. 

Ans. to ur Q. :-

the amt. of realisation exp. will debited to the entitled patners capitalA/c nd his commission will credited in the capitalA/c. On the other hand the amt. of commission will also be debited to realisation A/c. 

Journal Entries:-

X's capitalA/c         dr.   amt

     To REalisation exp.              amt.

(being realisation exp. borne by X.)

RealisationA/c       Dr.     amt.

   To X's capitalA/c                      amt.

(being commission given to x)

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Dear Becky,

No entry shall be passed in the books of Accounts in this context because a partner is paying a realisation expenses from his pocket and getting a commission for the same. It means the amount of Expenses is compensated ny the amount of Commission.
If u will see the Journal posted by Piyush u will come to know the accounts are nullified..!! Hence no Entry is recorded 

 

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