Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

When an unrecorded asset is realised at the time of dissolution of the firm, ............ account is debited and ......... account is credited.

Options:

Realisation, Bank

Concerned partner, Bank

Bank, realisation

Realisation, concerned partner

Correct Answer:

Bank, realisation

Explanation:

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)