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What is the main purpose of Realisation Account when a partnership firm is dissolved?

Answer and explanation

Correct answer: To find profit or loss from settlement of assets and external liabilities

Realisation Account shows profit or loss on sale of assets and payment of external liabilities. In exams keep it separate from capital accounts.

Related tags

AccountancyDissolutionRealisation AccountExpertRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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