Question 17 of 53beginner🧠 RememberFill in the Blanks1 mark

All assets (except cash/bank and fictitious assets) are transferred to the _____ (Debit/Credit) side of _____ Account (Realisation/Capital).

Correct Answer

Debit; Realisation

Exercise: Test your Understanding – III | Q: 1 | (Page 17)
For More Understanding

Explanation

According to the textbook context under section 4.4.1 Journal Entries, it clearly states: 'All asset accounts excluding cash, bank and the fictitious assets, if any are closed by transfer to the debit of Realisation Account at their book values.' The journal entry provided is 'Realisation A/c Dr. To Assets (Individually) A/c', which confirms that the Realisation Account is debited when assets are transferred to it during dissolution of a partnership firm.