The value of assets on dissolution of partnership is debited to realization account and credited to ___ account
Answer Details
The realization account is used to record the sale of assets and settlement of liabilities during the dissolution process. When assets are sold, cash is received. This cash is credited to the cash account to reflect the increase in cash holdings. Ultimately, the goal of dissolution is to convert all assets into cash, settle liabilities, and distribute any remainin cash among the partners according to their profit-sharing ratios