A/an is a time between the acquisition of assets for processing and their realisation in cash.

current liability

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operating cycle

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non-operating cycle

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current assets

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Solution

The correct option is B operating cycle
The time gap between the acquisition of assets for processing and their realisation in cash and cash equivalents is called operating cycle.

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________________ is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents.

When the unrecorded asset is sold for cash, realisation account will be …………….

Q. Book Value of assets (other than cash and bank) transferred to Realisation Account is ₹ 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.
You are required to record the Journal entries for realisation of assets.

Give the necessary journal entries in each of the following alternative cases :

(i) Realisation expenses amounted to Rs. 500.

(ii) Realisation expenses paid by the firm amounted to Rs. 500 and the partner has to bear the realisation expenses.

(iii) 'A' one of the partners was to bear all the realisation expenses for which he was given a commission of 2% of net cash realised from dissolution. Cash realised from assets was Rs 25,000 and cash paid for liabilities amounted to Rs 5,000

Q. What journal entry is passed for realising assets to provide cash for payment of liabilities?

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A/an is a time between the acquisition of assets for processing and their realisation in cash.

The correct option is B operating cycle The time gap between the acquisition of assets for processing and their realisation in cash and cash equivalents is called operating cycle.

The correct option is B operating cycle
The time gap between the acquisition of assets for processing and their realisation in cash and cash equivalents is called operating cycle.