It is prepared by: Transferring all the assets except Cash or Bank Account to the debit side of the account. Transferring all the liabilities except Partner's Loan Account and Partners' Capital Accounts to the credit side of the account. Crediting the Receipt on the sale of assets to the account

Journal Entry for Transferring an Asset to Realisation Account

When a company is liquidating its assets, it needs to transfer them to the realisation account. The following journal entry can be used to transfer the asset to the realisation account:

Debit
Realisation Account
Credit
Asset Account



The above journal entry is used to transfer the asset to the realisation account. The realisation account is an account that is created when a company is liquidating its assets. It is used to record all the transactions related to the liquidation of assets.

When an asset is transferred to the realisation account, the asset account is credited, and the realisation account is debited. This means that the value of the asset is reduced, and the value of the realisation account is increased.

The realisation account is used to record all the transactions related to the liquidation of assets, including the sale of assets, payment of creditors, and distribution of the remaining funds to the shareholders.



Transferring an asset to the realisation account is an essential step in the liquidation process. It helps to keep track of all the transactions related to the liquidation of assets. By following the above journal entry, companies can easily transfer their assets to the realisation account and keep track of all the transactions related to the liquidation of assets.