Which item will be transferred to the credit side of Realisation Account on dissolution?

Correct answer: Bills Payable

The direct answer is option A, Bills Payable. On dissolution, the Realisation Account is used to record the transfer and settlement of assets and external liabilities. Assets are transferred to the debit side because they are taken out of the books for realisation. External liabilities are transferred to the credit side because the firm must settle them, and their transfer represents a claim being recorded there. Bills Payable is an external liability, so it goes to the credit side. Option A is correct. Option B, Furniture, is an asset and is transferred to the debit side, not the credit side. Option C, Stock, is also an asset and therefore goes to the debit side. Option D, Salary paid in advance, is normally a current asset or prepaid expense, so it is treated as an asset and transferred to the debit side, subject to the usual accounting treatment. The key distinction is liability versus asset. Memory cue: in the Realisation Account, assets generally enter on the debit side and external liabilities on the credit side.