At the dissolution of a firm, if the amount realised from assets is less than the payments made for liabilities and realisation expenses, what will be the result in the Realisation Account?

Correct answer: हानि (Loss)

When the amount realised from assets is less than the payments for liabilities and realisation expenses, the debit side of the Realisation Account exceeds its credit side. The resulting debit balance represents a loss, which is transferred to the partners’ capital accounts in their profit-sharing ratio. Exam tip: A debit balance in the Realisation Account indicates loss, while a credit balance indicates profit.