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If debtors with a book value of ₹10,000 realise only ₹9,000, what will be the effect on the Realisation Account?

Answer and explanation

Correct answer: ₹1,000 की हानि होगी

The debtors have a book value of ₹10,000, but only ₹9,000 is realised. The shortfall of ₹1,000 is a loss on realisation and is recorded on the debit side of the Realisation Account. A profit would arise only if the amount realised exceeded the book value. Exam tip: Realisation below book value means loss; realisation above book value means profit.

Related tags

Realisation AccountDissolution Of PartnershipDebtorsRealisation LossAccountancyDissolution Of A Partnership FirmClass 12 Mcq

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