If the only realisation expense is ₹4,200 and there is no other difference, what will be the result in the Realisation Account?

Correct answer: Loss of ₹4,200

Realisation expenses are debited to the Realisation Account. Since there is no other gain or loss, the debit of ₹4,200 creates a loss of ₹4,200, which is transferred to the partners’ capital or current accounts in their profit-sharing ratio. Therefore, option B is correct. Exam tip: realisation expenses generally create a loss, while profit on the sale of assets reduces that loss.