Which of the following are credited to the Realisation Account?
A. Assets taken over by a partner
B. Liabilities paid by the firm
C. Sale of assets
D. Realisation of Unrecorded assets
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A, C and D only
The Realisation Account is credited with what the firm gets from its assets, in cash or by a partner taking them over, and with liabilities transferred to it; it is debited with assets transferred and with what the firm pays.
A. Assets taken over by a partner Correct. The entry is Partner’s Capital A/c Dr. To Realisation A/c, so Realisation Account is credited with the value at which he takes the asset.
B. Liabilities paid by the firm Incorrect. Payment of liabilities is Realisation A/c Dr. To Bank A/c, so it goes to the debit side, not the credit side.
C. Sale of assets Correct. The sale proceeds are recorded as Bank A/c Dr. To Realisation A/c.
D. Realisation of Unrecorded assets Correct. An asset not in the books that brings in cash is a gain on realisation: Bank A/c Dr. To Realisation A/c.
NCERT (2026-27 edition):
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