Question

On firms dissolvtion, patents realised at R.S 40,000. state which account will be credited​

Answer 1

Answer:

At the time of dissolution, all the assets are transferred to realisation account. Journal entry is:

Realisation A/c Dr.

To assets A/c

When assets are sold, entry is:

Bank A/c Dr.

To Realisation A/c

Because bank balance increased.