All assets (except cash/bank and fictitious assets) are transferred to the _____ side of ______ Account.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Debit/Realization
On dissolution, all assets other than cash/bank and fictitious assets are closed by transfer to the debit side of the Realisation Account at their book values (Realisation A/c Dr., To Assets A/c). Cash and bank stay out because they are used to settle the accounts, and fictitious assets are written off to the partners’ capital accounts.
NCERT (2026-27 edition):
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