When an unrecorded asset is realised at the time of dissolution of the firm, ............ account is debited and ......... account is credited.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Bank, realisation.
For realisation of any unrecorded assets including goodwill, if any, then the following journal entry is passed-
Bank A/c Dr.
To Realisation A/c
(Unrecorded assets realised)