Question

Q.2
The amount of Sundry Assets transferred to Realisation Account is Rs. 80,000. Assets realised 85%
of their book value. What amount should be credited to Realisation Account?
Distinguish between Receipt and Payment Account' and 'Income and Expenditure Account on the
basis of 'Depreciation'.
Q.3​

Answer 1

Explanation:

the amount transferred to realisation account is 68000

this is because it's stated that 85% is realised

$\frac{85}{100} \times 80000 = 68000$

receipt and payment account does not include non cash items. And income and expenditure records non cash items. depreciation being a non cash item is not recorded in receipts and payments but it is recorded in income and expenditure account