Explanation

When assets are transferred to the realization account during partnership dissolution, the entry is: Debit Realization Account and Credit the respective Asset Account (not cash). However, this question asks about when assets are sold for cash.

When assets are sold during dissolution, the proceeds are: Debit Cash/Bank Account (cash received) and Credit Realization Account (recording the sale). The realization account collects all the sale proceeds and expenses of dissolution.

The complete process is: First, transfer all assets to realization account (Dr Realization, Cr Assets). Then, when assets are sold, record the cash received (Dr Cash, Cr Realization). The difference between assets transferred and cash received shows profit or loss on realization.

The answer “cash” refers to the fact that when assets are sold, the realization account is credited while cash is debited with the sale proceeds. Ultimately, all assets are converted to cash for distribution to partners.