All assets except cash/bank and fictitious assets are transferred to the Debit side of the _____ Account.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Realisation Account
At the time of dissolution of a firm, all assets (except cash/bank and fictitious assets like preliminary expenses, goodwill written off, etc.) are transferred to the debit side of the Realisation Account. Similarly, all external liabilities are transferred to its credit side. This account helps in ascertaining profit or loss on realization of assets and settlement of liabilities.