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If Joint Life Policy is not recorded in books and ₹25000 is received then what entry is made?

Answer and explanation

Correct answer: Bank debit and Realisation Account credit

Amount received from an unrecorded asset is credited to Realisation Account. There is no book value to debit.

Related tags

AccountancyJoint Life PolicyUnrecorded AssetRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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