At the time of dissolution of a partnership firm, what is the effect of an increase in realisation expenses on the result of the Realisation Account?

Correct answer: लाभ घटता है या हानि बढ़ती है

Realisation expenses are recorded on the debit side of the Realisation Account. Therefore, an increase in these expenses reduces any profit or increases any loss shown by the account. Option B states the opposite effect. Exam tip: Items debited to the Realisation Account reduce profit or increase loss.