When the Vendor seller company agrees to bear liquidation expenses it will debit ........

Accountancy (Phase -I & II) Company Final Accounts

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When the Vendor (seller) company agrees to bear liquidation expenses, it will debit

Realisation Account

Bank Account

Goodwill Account

None of the above

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Explanation:

Realisation account refers to an account opened by the firm when it goes to dissolution to record the profit made from the sale of assets and loss suffered on the settlement of liabilities. All the assets and external liabilities are transferred to this account except: Cash in hand. Bank balance. Fictitious Assets.