At the time of dissolution of a firm, which items are generally recorded on the debit side of the Realisation Account?

Correct answer: Assets transferred, realisation expenses and liabilities paid

The debit side of the Realisation Account generally records the book value of assets transferred to it, realisation expenses, and liabilities paid. In contrast, liabilities transferred to the account and proceeds from the sale of assets are credited to the Realisation Account. Exam tip: assets are transferred by debiting Realisation Account, whereas liabilities are transferred by crediting it.