Which items are generally recorded on the debit side of the Realisation Account?

Correct answer: Transferred assets and realisation expenses

The debit side of the Realisation Account records the assets transferred from the books of the firm, excluding cash and bank balances, along with realisation expenses. Transferred liabilities and proceeds from the sale of assets are generally recorded on the credit side, so option B is incorrect. Exam tip: In a Realisation Account, assets and expenses go on the debit side, while liabilities and receipts go on the credit side.