Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

An unrecorded Investment realised at the time of Dissolution of partnership firm sold for 5,00,000. How will it be treated in Realisation Account?

Options:

Realisation A/C Debited

Realisation A/C Credited

Revaluation A/C Debited

Revaluation A/C Credited

Correct Answer:

Realisation A/C Credited

Explanation:

Realisation A/C Credited.
Journal entry for this will be-
Bank A/c Dr. ₹500000
  To Realisation A/c  ₹500000