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Under the usual dissolution entries, at what amount are non-cash assets (excluding fictitious assets) and external liabilities transferred to the Realisation Account?

Answer and explanation

Correct answer: At their book value

Non-cash assets, excluding fictitious assets, and external liabilities are transferred to the Realisation Account at their book values. Cash or bank balances and partners’ loans are not included in this transfer.

Related tags

Realisation AccountBook ValueDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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