At the time of dissolution of a partnership firm, if the amount realized from assets is insufficient to pay the liabilities and realization expenses, what will be recorded in the Realisation Account?

Correct answer: वसूली हानि (Realisation loss)

When the amount realized from assets is less than the total liabilities and realization expenses, the debit balance of the Realisation Account represents a realisation loss. This loss is transferred to the partners’ capital or current accounts in their profit-sharing ratio. Therefore, the profit option is incorrect. Exam tip: a shortfall between realization proceeds and the amounts payable indicates a realisation loss; the reverse indicates a realisation profit.