Identify the item credited to Realisation Account in the event of dissolution of a partnership firm.
- AProvision for doubtful debts
- BGross value of debtors
- CRealisation expenses
- DPayment of unrecorded liability
Solution & Step-by-step Explanation
At the time of dissolution, provisions against assets (like Provision for Doubtful Debts) are transferred to the credit side of the Realisation Account. Gross debtors are transferred to the debit side, realization expenses are debited, and payments of liabilities are also debited.