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    • Question : Goodwill of Rs. 75,000 and prepaid fire insurance of Rs. 10,000. (already transferred to realization account) What entry will be passed at ...
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    Question : Goodwill of Rs. 75,000 and prepaid fire insurance of Rs. 10,000. (already transferred to realization account) What entry will be passed at the time of realization of assets?

    Option 1: Bank account debited and credited realization account.

    Option 2: Debited realization account and credited bank account.

    Option 3: No Journal entry required.

    Option 4: None of the above.

    Team Careers360 16th Jan, 2024
    Answer
    Answer (1)
    Team Careers360 18th Jan, 2024

    Correct Answer: No Journal entry required.


    Solution : Answer = No Journal entry required

    Intangible assets like Goodwill, Patents, and Trade Marks are not Realised, then no journal Entry will Be Passed.
    Hence, the correct option is 3.

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