If a creditor accepts an asset whose value is more than the amount due to him.
A. He will pay excess amount
B. He will not pay anything
C. The excess amount will be credited to Realisation Account
D. The excess amount is debited to Realisation account
E. The excess amount is debited to Bank account
Choose the correct answer from the options given below:
This question was previously asked in
Shift 02/06/2023 3:30 PM - 6:30 PM
A
A, C and E only
B
A, B and C only
C
B, C and D only
D
C, D and E only
Correct Answer
A, C and E only
Detailed Explanation
In this scenario, when a creditor accepts an asset worth more than the amount due to them, the excess amount is credited to the Realisation Account (Option C)
Options A (He will pay the excess amount)
Option E (The excess amount is debited to the Bank account)
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