On dissolution of a partnership firm, on which side of the Realisation Account is a realisation expense of ₹3,000 recorded?

Correct answer: Debit side

In the Realisation Account, expenses related to realising assets, such as the ₹3,000 realisation expense, are recorded on the debit side. They increase the debit total and thereby reduce realisation profit or increase realisation loss. The credit side records amounts realised from assets and liabilities transferred. Exam tip: Record realisation expenses on the debit side and asset realisations on the credit side.