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At dissolution machinery appears at ₹80000 and is sold for ₹62000. What will be the effect in Realisation Account?

Answer and explanation

Correct answer: Machinery ₹80000 debit and Bank ₹62000 credit

Book value of asset is debited to Realisation Account and sale proceeds are credited. The difference automatically becomes realisation profit or loss.

Related tags

AccountancyDissolutionAssetsSaleRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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