On dissolution of a firm, the amount received from the sale of unrecorded assets will be credited to which A/c?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Realisation Account
On dissolution, every gain or loss from selling assets and paying liabilities passes through the Realisation Account. An unrecorded asset was never in the books, so when it is sold the cash received is a gain on realisation: Bank A/c is debited and Realisation A/c is credited.
NCERT (2026-27 edition):
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