The journal entry for sale of assets is ______________________.
A
Bank A/c Dr. To Realisation A/c
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B
Realisation A/c Dr. To Assets (Individually) A/c
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C
Realisation A/c Dr. To Bank A/c
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D
Bank A/c Dr. To Assets (Individually) A/c
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Solution
The correct option is A Bank A/c Dr. To Realisation A/c In case of dissolution of firm, all assets and liabilities are transferred to Realization Account. Amount received against the sale of assets will be credited to realization account and amount paid against any liability should be debited to realization account.