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State whether the following statements are True or False with reasons.The cash and bank balances are not transferred to the Realisation A/c. |
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Answer» This statement is True. Cash or bank balance are liquid assets. They cannot be sold or realised. The cash and/or bank balances are recorded in the Cash and/or Bank Account. All cash and/or bank transactions, at the time of Realisation, are recorded in the Cash and Bank Accounts. Therefore, Cash and Bank balances are not transferred to Realisation Account. |
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