Realisation A/c is debited with __________ on the dissolution of firm.
- ATransfer of all assets that are to be Realised
- BTransfer of all external Liabilities of the firm
- CCash received on sale of assets
- DAny asset that was taken over by any one of partner
Solution & Step-by-step Explanation
During dissolution, the values of all existing realisable assets are closed by transferring them to the debit side of the Realisation Account via the entry:
External liabilities, cash realizations, and partner takeovers are credited to the Realisation Account.
External liabilities, cash realizations, and partner takeovers are credited to the Realisation Account.