Money realised from the sale of unrecorded assets is debited to the _________a)Balance Sheetb)Revaluation Accountc)Partners capital accountd)Cash AccountCorrect answer is option 'D'. Can you explain this answer?

Question

Answer

Debiting the Cash Account for the money realised from the sale of unrecorded assets

When a business sells an unrecorded asset, it receives cash in exchange. This cash receipt needs to be recorded in the accounting system to ensure accurate financial reporting. The money realised from the sale of unrecorded assets is debited to the Cash Account because it represents an increase in the business's cash balance.

Importance of recording the sale of unrecorded assets

The sale of unrecorded assets can have an impact on the financial statements of a business. If the sale is not recorded, it can lead to incorrect financial reporting and misrepresent the financial position of the business. For example, if the business sells a valuable asset for a significant amount of cash, but fails to record the sale, its cash balance will be understated, and its assets will be overstated. This can lead to inaccurate financial ratios, such as the current ratio, and mislead stakeholders about the business's ability to meet its short-term obligations.

Conclusion

In conclusion, the money realised from the sale of unrecorded assets should be debited to the Cash Account to ensure accurate financial reporting and prevent misrepresentation of the business's financial position. It is important to record all transactions accurately and in a timely manner to maintain the integrity of the accounting system.

Answer

Yes bcoz if we sell assets the cash come and cash is a real account therefore it will be debited as cash a/c ____________dr            to realisation a/c

Answer

Money realized from the sale of an unrecorded asset at the time of dissolution of partnership firm, should be shown in the credit side of realization account and debit side of cash account.

Answer

Money received by sale of Assets are always shown on debit side of Cash/ Bank A/c. When there is no information given about an Asset at the time of dissolution, it means that its value has become nil(0) and will not be shown in Cash/ Bank A/c.

Answer

Ans D cash account

Answer

Yes,right answer is D because journal entry of this statement is Bank/cash A/C.       Dr.   To Realisation A/C

Answer

Cash account

Answer

The answer is D because...first of all its given tat money is realised. That is cash is received. When cash is realised cash a/c is debited. So that all to be thought of to answer. No more intensive thinking is required. Still if u move further into it and try to eliminate options then- a.balance sheet has no debit side. B.revaluation account if unrecorded assets are sold at the time when in case revaluation is prepared and thereby assets found and sold and tried to be linked through revaluation account thereby to record its profit then also it shall be credited to revaluation a/c , not debited. Note- in any other case, such unrecorded asset shall not be passed through revaluation account. C. Partners' capital a/c. Debiting to partners' capital means decreasing their capital, how can an unrecorded asset can decrease their capital. It can only increase their capital.ie, whether by recording it or by recognising cash received if sold; as in this case.

Answer

Because those assets which are written off or unrecorded and sell in future are income for the firm and debited in cash account.

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