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What is the result shown by the Realisation Account prepared at the dissolution of a partnership firm?

Answer and explanation

Correct answer: लाभ या हानि

The Realisation Account determines the profit or loss arising from the sale of assets and settlement of liabilities. Profit is transferred to the partners’ capital accounts on the credit side, while loss is transferred on the debit side. Therefore, its result is either profit or loss, not merely the cash balance. Exam tip: The balance of the Realisation Account is transferred to the partners’ capital accounts.

Related tags

Partnership DissolutionRealisation AccountProfit And LossAccountancy Class 12Dissolution Of A Partnership FirmAccountancyClass 12 Mcq

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