Accountancy Part ADissolution of Partnership Firm

Select the items shown on the debit side of Realisation A/c :(A) Cash…

Select the items shown on the debit side of Realisation A/c :

(A) Cash in hand

(B) Intangible assets

(D) Bills Receivables

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → B and D only

The Realisation A/c is opened to find the profit or loss on selling the assets and paying off the liabilities. So an asset goes to it only if it is something the firm will sell or collect; money in hand needs no selling, and an asset with nothing to sell is not taken there.

(A) Cash in hand Incorrect. Cash and bank balances are not transferred; they are the money with which liabilities and partners are paid.

(B) Intangible assets Correct. Goodwill, patents and the like are assets other than cash, bank and fictitious assets, so they are transferred at book value.

(C) Fictitious assets Incorrect. They cannot be sold, so they are written off to the partners’ capital accounts in the profit sharing ratio, not taken to the Realisation A/c.

(D) Bills Receivables Correct. It is an asset to be realised, so it is transferred at book value like debtors.

NCERT (2026-27 edition):
Journal Entries – “1. For transfer of assets All asset accounts excluding cash, bank and the fictitious assets, if any are closed by transfer to the debit of Realisation Account at their book values.”