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Cash ₹12000 and Bank ₹18000 appear on asset side. What is their treatment in Realisation Account?

Answer and explanation

Correct answer: They will not be transferred to Realisation Account

Cash and Bank are already liquid funds so they are not transferred to Realisation Account. They are used to record receipts and payments.

Related tags

AccountancyCash BankRealisation AccountRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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