At the time of dissolution of a partnership firm, on which side of the Realisation Account is realisation expense of ₹2,500 recorded?

Correct answer: Debit side

During dissolution, realisation expenses are costs incurred for disposing of assets and settling liabilities. Therefore, ₹2,500 is recorded on the debit side of the Realisation Account. The credit side generally records proceeds from the sale of assets and the transfer of liabilities, so the credit-side option is incorrect. Exam tip: debit assets transferred and realisation expenses; credit asset-sale proceeds and liabilities transferred.