On dissolution of a firm, the assets of firm are transferred to realization account at their

Book value
Market value
Realizable value
Agreed value among partners

The correct answer is C. Realizable value.

Realizable value is the amount of money that can be expected to be realized from the sale of an asset in the near future. It is usually determined by taking into account the current market conditions and the estimated costs of selling the asset.

Book value is the value of an asset as recorded in the financial statements. It is usually determined by taking into account the original cost of the asset, less any accumulated depreciation.

Market value is the price that an asset would be expected to fetch in a competitive market. It is usually determined by taking into account the current market conditions and the estimated future cash flows from the asset.

Agreed value is the value of an asset that is agreed upon by the parties involved. It is usually determined by taking into account the book value, market value, and other relevant factors.

In the case of dissolution of a firm, the assets of the firm are transferred to realization account at their realizable value. This is because the realizable value is the most accurate reflection of the value of the assets at the time of dissolution. The book value and market value of the assets may not be accurate representations of their value at the time of dissolution, due to factors such as changes in market conditions or the estimated costs of selling the assets. The agreed value of the assets may also not be accurate, if the parties involved are not able to agree on a fair value.

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