Question : On the firm's dissolution, furniture was realised at Rs. 50,000. State which account will be credited.
Option 1: Cash Account
Option 2: Realisation Account
Option 3: Profit and Loss Account
Option 4: Patents Account
Answer (1)
23rd Jan, 2024
Correct Answer: Realisation Account
Solution :
Answer =
Realization account.
When assets are realized, the Bank Account will be debited, and the realization account will be credited because the furniture has been already transferred to the realization account.
Hence, the correct option is 2.
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