At the time of dissolution, if an asset is recorded at a book value lower than its actual realisable value, what will be the effect on the profit of the Realisation Account?

Correct answer: लाभ बढ़ेगा

When an asset’s book value is lower than its actual realisable value, the asset is debited to the Realisation Account at the lower book value, while the higher amount received is credited. The resulting difference increases the realisation profit. Option A describes the effect generally associated with overvaluation, not undervaluation. Exam tip: Compare the realisable value with the book value—proceeds higher than book value increase realisation profit.