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easyMCQCUET Accountancy 2023 11 June Shift 32026Accountancy
1 mark

Realisation A/c is debited with __________ on the dissolution of firm.

  1. A
    Transfer of all assets that are to be Realised
  2. B
    Transfer of all external Liabilities of the firm
  3. C
    Cash received on sale of assets
  4. D
    Any 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.

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Realisation A/c is debited with __________ on the dissolution of firm.
A
Transfer of all assets that are to be Realised
B
Transfer of all external Liabilities of the firm
C
Cash received on sale of assets
D
Any asset that was taken over by any one of partner

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