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
On dissolution, every asset except cash, bank and fictitious assets is closed by transfer to the debit of the Realisation Account at book value, so that the profit or loss on selling them can be found. Cash and bank stay out because they are used to settle the accounts, and fictitious assets have nothing to sell.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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