Question

On the dissolution of the firm, ______ will be shown as realised at book value, if there is no information regarding the realised value of that asset.

विकल्प

• Furniture

• Goodwill

Answer 1

On the dissolution of the firm, furniture will be shown as realised at book value if there is no information regarding the realised value of that asset.

Explanation:

During the dissolution of a partnership firm, if the question remains completely silent about the sale or realisation of an asset, the accounting treatment depends on its classification. A physical or tangible asset like furniture is legally assumed to be fully sold at its existing book value because it retains physical market worth. On the other hand, an intangible asset like goodwill is automatically assumed to have realised a value of nil (zero) because its value vanishes when a firm is permanently shutting down.