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Where is cash receipt recorded?

Answer and explanation

Correct answer: Credit side

Cash received from selling assets is credited to the Realisation Account because it represents the amount realised from those assets. In contrast, assets transferred to the Realisation Account and realisation expenses are debited. Exam tip: asset sale proceeds are credited, while assets transferred are debited.

Related tags

AccountancyPartnership DissolutionRealisation AccountAsset SaleAccounting EntriesDissolution Of A Partnership FirmClass 12 Mcq

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