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what is treatment of partner"s commission in dissolution of firm

Commission to a partner at the time of Dissolution of Partnership firm is paid for meeting realisation Expenses. Therefore, following Journal Entry have been passed:

 
   ​Journal Entry
Date Particulars L.F. Debit Amount
Rs		 Credit Amount
Rs
           
  Realisation A/c Dr      
    To Partner’s Capital A/c        
  (Realisation Expenses are born and paid by partner)        

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Partner's commission for realisation services:

Such commission is debited to Realisation A/c and credited to the concerned Partner's Capital A/c. This is because it is also a realisation expense which incurred for selling assets/ paying liabilities.

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