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What is the effect of an increase in realisation expenses during the dissolution of a partnership firm?

Answer and explanation

Correct answer: वास्तविकीकरण हानि बढ़ेगी

Realisation expenses are debited to the Realisation Account. An increase in these expenses raises the debit side of the account, thereby increasing the realisation loss or reducing the realisation profit. Hence, option B is correct. Exam tip: Realisation expenses are always recorded on the debit side of the Realisation Account.

Related tags

Partnership DissolutionRealisation AccountRealisation ExpensesAccounting TreatmentClosing The BusinessDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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