Question : Which of the following is transferred to Realisation Account:
Option 1: Bank Account
Option 2: Balance of Profit & Loss Account
Option 3: cash received from debtors
Option 4: capital account
Answer (1)
8th Jan, 2024
Correct Answer: cash received from debtors
Solution :
Answer =
cash received from debtors
When assets are realised through realisation and liabilities paid, the cash realised and cash paid will be debited/credited to the realisation account.
Bank a/c.....Dr
To realisation a/c(cash collected from debtors)
Hence, the correct option is 3.
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