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.
Answer (1)
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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