Question

when the expense of liquidation are to be borne by the vendor company debits​

Answer 1

Answer:

When liquidation expenses is paid and borne by seller company then it is debited to Realisation A/C.

Answer 2

Answer:

When liquidation expenses is paid and borne by seller company then it is debited to Realization A/C.

Explanation:

• When the seller company pays and bears the liquidation costs, the Realization A/C  is debited.

• When the corporation underwent corporate fusion, this kind of problem would arise. When two or more businesses merge together to establish one commercial entity, it is a contractual arrangement.

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