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Where is cash received recorded in Realisation Account?

Answer and explanation

Correct answer: Credit side

Cash received from the sale of assets is credited to the Realisation Account because it represents the amount realised from those assets. Realisation expenses, in contrast, are recorded on the debit side. Exam tip: Remember that assets transferred are debited, while the proceeds received from their realisation are credited.

Related tags

Partnership DissolutionRealisation AccountAsset SaleAccounting EntriesDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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