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At the time of dissolution of a partnership firm, what will be the result in the Realisation Account if realisation expenses exceed the amount realised?

Answer and explanation

Correct answer: वसूली हानि

Realisation expenses are recorded on the debit side of the Realisation Account, while the proceeds from realised assets are recorded on the credit side. When expenses exceed the amount realised, the account has a debit balance, which represents a realisation loss. Therefore, the correct answer is realisation loss. Exam tip: A credit balance in the Realisation Account indicates profit, while a debit balance indicates loss.

Related tags

Partnership DissolutionRealisation AccountRealisation ExpensesAccounting LossDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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