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Question
Which of the following is transferred to Realisation Account?
Options
Balance of Cash Account.
Balance of Reserves.
Balance of Profit & Loss Account.
Patents Account.
MCQ
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Solution
Patents Account.
Explanation:
During the dissolution of a partnership firm, all saleable assets appearing in the Balance Sheet must be transferred to the debit side of the Realisation Account at their book values to close them out. Patents are valuable intangible assets that can be sold or liquidated in the market to realise cash.
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