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Firm has patent of ₹60000 and it became worthless. What will happen in Realisation Account?

Answer and explanation

Correct answer: Patent ₹60000 will be debited and no proceeds credited

Book value of worthless asset remains debited in Realisation Account and proceeds are nil. This increases realisation loss.

Related tags

AccountancyIntangible AssetWorthless AssetRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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