At the time of dissolution of a firm, the available cash balance is generally not transferred to which account?

Correct answer: Realisation Account

At dissolution, cash and bank balances are generally not transferred to the Realisation Account. They remain in the Cash or Bank Account and are used to pay liabilities and dissolution expenses. In contrast, all other assets are transferred to the Realisation Account. Exam tip: remember the rule—“All assets except cash and bank balances are transferred to the Realisation Account.”