Question

The journal entry for transfer of assets is ______________________.

• A. Realisation A/c Dr.
  To Assets (Individually) A/c
• B. Assets (Individually) A/c Dr.
  To Realisation A/c
• C. Bank A/c Dr.
  To Realisation A/c
• D. Realisation A/c Dr.
  To Revaluation A/c

Answer 1

The correct option is A Realisation A/c Dr.

To Assets (Individually) A/c
All asset accounts excluding cash, bank and the fictitious assets, if any are closed by transfer to the debit of Realisation account at their book values. It may be noted that sundry debtors are transferred at gross value and the provision for doubtful accounts is transferred to the credit side of Realisation account along with liabilities. The same is applied for fixed assets, if provision for depreciation account is maintained. The general entry passed for the transfer of will be:

Realisation Account Dr.

To Assets (Individually) Account