Question

On dissolution of a firm all the assets are transferred to realisation account at their which value

Answer 1

All assets are transferred at BOOK value

Answer 2

Answer:

When a firm is in a situation of dissolution then all the assets and liabilities are transferred to realisation account at their book value.

Book value is referred as the value of assets and liabilities that is recorded in the firm's balance sheet.

Book value of all the assets and liabilities are transferred to the realisation account for calculating the true value of profit and loss on the occasion of dissolution of the firm.