At the time of dissolution, an asset has a book value of zero but is sold for ₹10,000. What will be the effect on the Realisation Account?

Correct answer: Realisation profit बढ़ेगा

An asset with a zero book value contributes no debit amount to the Realisation Account, but the sale proceeds of ₹10,000 are credited to that account. Therefore, the realisation profit increases by ₹10,000. The option stating that the loss increases is incorrect. Exam tip: when an asset has no book value, any amount received from its sale increases the realisation profit.