If a firm’s assets are recorded in the books below their actual realizable value and their actual value is received at the time of dissolution, what will be the effect on the Realisation Account?

Correct answer: वसूली लाभ बढ़ जाएगा

In the Realisation Account, the book value of assets is debited, while the amount realised is credited. When assets are recorded at an understated value but are realised for their actual higher value, the excess on the credit side increases, resulting in a higher realisation profit. This does not directly increase the firm’s liabilities. Exam tip: For assets, compare the amount realised with their book value; a higher realisation amount produces a realisation profit.