On the dissolution of a firm, the amount realized from an unrecorded asset is transferred to

April 15, 2024 by rawan239

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The correct answer is: B. Realization Account

A realization account is a temporary account used to record the

sale of assets and the distribution of the proceeds to the partners. The amount realized from an unrecorded asset is transferred to the realization account, which is then closed to the partners’ capital accounts.

The other options are incorrect because:

• A revaluation account is used to record the increase or decrease in the value of assets.
• A partner’s capital account is used to record the partner’s investment in the firm and their share of the profits or losses.
• The credit side of the cash account is used to record the receipt of cash.

I hope this helps! Let me know if you have any other questions.