(iii)On the dissolution of the firm, Partner Rex agreed to take over the responsibility of completing the dissolution work at an agreed remuneration of ₹ 1,000 and to bear all realisation expenses. The actual realisation expenses amounted to ₹1,300 which were paid by the firm on Rex’s behalf.

What amount will be debited by the firm to the Realisation Account?

(a) ₹ 1,000
(b) ₹ 2,300
(c) ₹ 1,300
(d) ₹ 300

Solution