For payment of realisation expenses
(a) When some expenses are incurred and paid by the firm in the process of
realisation of assets and payment of liabilities:
Realisation A/c Dr.
To Bank A/c
(b) When realisation expenses are paid by a partner on behalf of the firm:
Realisation A/c Dr.
To Partner’s Capital A/c
(c) When a partner has agreed to undertake the dissolution work for an
agreed remuneration bear the realisation expenses:
(i) if payment of realisation expenses is made by the firm
Partner’s Capital A/c Dr.
To Bank A/c
(ii) if the partner himself pays the realisation expenses, no entry is required
(iii) For agreed remuneration to such partner
Realisation A/c Dr.
To Partner’s Capital A/c