Question

While transferring assets to realisation account ______ is omitted to be transferred.

Options

• Patents

• Goodwill

• Cash

• Investments

Answer 1

While transferring assets to realisation account, cash is omitted to be transferred.

Explanation:

While transferring assets to the Realisation Account during the dissolution of a firm, cash is not transferred because it is already a liquid asset and does not need to be realised. Other assets like patents, goodwill, and investments are transferred to the Realisation Account to determine the profit or loss on their sale or settlement. This helps in settling liabilities and distributing remaining funds among partners.