Question

Name an item which is transferred to the credit side of the realisation account at the time of dissolution of partnership firm but does not involve cash payment

Answer 1

Answer:

unrecorded assest

Explanation:

unrecorded assest are those which do not appear in the books of firm.

Answer 2

Answer;

Undeclared Asset

Explanation:

Undeclared assets are those which have not been declared in the financial books and hence they are not transferred to the debit side of Realisation Account. However they do contain weightage in terms of cash when a partnership firm is dismissed. Such cash can also be used to pay off the firm's debts and reduce overall burden