If all transactions relating to assets and liabilities are correctly recorded in the Realisation Account at the time of dissolution, what will its final balance represent?

Correct answer: प्राप्ति पर लाभ या हानि (Profit or loss on realisation)

The Realisation Account records the transfer and realisation of assets, the transfer and settlement of liabilities, and realisation expenses. The difference between its debit and credit totals shows the profit or loss on realisation, which is transferred to the partners’ capital accounts. Thus, the final balance may be either a profit or a loss. Exam tip: if the credit total exceeds the debit total, there is a profit; if the debit total exceeds the credit total, there is a loss.