1. Realisation Expenses

2. Journal Entries of Realisation Expenses
Transaction
Journal Entry
When Realisation Expenses are borne and also paid by the firm.
Realisation A/c …Dr.
To Cash/Bank A/c
When Realisation Expenses are borne by the firm but are paid by a partner.
To Concerned Partner’s
Capital A/c
When Realisation Expenses are borne and also paid by the same partner.
No Entry

3. Journal Entries of Realisation Expenses
Transaction
Journal Entry
When Realisation Expenses are borne by a partner and paid by firm.
Concerned Partner’s
Capital A/c Dr.
To Cash/Bank A/c
When a partner agrees to carry out dissolution work for an agreed remuneration. Dissolution Expenses are borne by the partner.
Realisation A/c Dr.
To Concerned Partner’s
Capital A/c
When a partner agrees to carry out dissolution work for an agreed remuneration. Dissolution Expenses are borne by the firm.
Realisation A/c Dr.
For Dissolution Expenses
Realisation A/c …Dr.
To Cash / Bank A/c

4. Journal Entries of Realisation Expenses
Transaction
Journal Entry
When Realisation Expenses are to be borne by one partner (Say X) and paid by other partner (Say Y).
Either
X’s Capital A/c Dr.
To Y’s Capital A/c Or
No entry.

5. Some Cases of Treatment of Realisation Expenses
Realisation or Dissolution expenses amounted to Rs. 10,000.
Realisation expenses amounted to Rs. 5,000 paid by a partner ‘X’.
‘X’ a partner, agreed to take over the responsibility of completing dissolution at an agreed remuneration of Rs. 5,000 and to bear all Realisation expenses. Realisation Expenses amounted to Rs. 4,000 were paid by X.
‘X’ a partner agreed to take over the responsibility of completing dissolution at an agreed remuneration of Rs. 5,000 and to bear all Realisation expenses. Actual Realisation expenses amounted to Rs. 4,000 were paid by the firm.

6. ‘Y’, a partner is to carry out dissolution of the firm for an agreed remuneration of Rs. 15,000. Dissolution expenses came to Rs. 18,000, which were paid by the firm.
‘X’, one of the partners, was to receive 2% of the value of assets realised as remuneration for completing the dissolution work and was to bear Realisation expenses. Realisation expenses Rs. 6,000 were paid by X. The assets (including Cash at Bank Rs. 6,000) realized Rs. 3,06,000.
‘X’ is to bear all expenses of Realisation for which he is allowed a commission of Rs. 12,000. Actual Realisation expenses were Rs. 18,000 and were paid by the firm.
Realisation expenses of Rs. 10,000 are to be borne by Mohan, a partner. However, such expenses were paid by Sohan, another partner.