If the totals of the debit and credit sides of the Realisation Account are equal, what is the result of realisation?

Correct answer: Neither profit nor loss

The Realisation Account determines the profit or loss arising from the realisation of assets and settlement of liabilities. If its debit and credit totals are equal, there is no balancing figure; therefore, neither profit nor loss arises on realisation. Remember the exam rule: an excess of the credit side indicates profit, while an excess of the debit side indicates loss.