Question

5.Excess of debit over credit balance in Realisation A/c shows___
on realization​

Answer 1

Answer:

Realization Account is prepared at the time of dissolution of a partnership firm. This account is prepared to know the profit made or loss incurred at the time of dissolution of a firm. All the assets except cash and bank a/c are transferred to the debit side of realization account and liabilities (not capital accounts) are transferred to the credit side of realization account. When assets are sold cash/bank A/c is debited and Realization A/c credited. On settling the liabilities Realization A/c is debited and Cash/Bank A/c is credited. In last if total of credit side exceeds debit side, it means there is profit and that is transferred to partner's capital accounts. In case of loss, the partners' capital accounts are debited and Realization A/c credited.

Step-by-step explanation:

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Answer 2

Question:

Excess of debit over credit balance in revolution A/c shows___on revolution.

Answer:

Excess of debit over credit balance in revolution A/c shows a loss on revolution.

Explanation:

The realization account is prepared at the time of the dissolution of a partnership firm. This account is created to know about the profit made or loss transected at the time of dissolution of a firm. All the assets except bank account and cash are transferred to the debit side of the realization account and which are not capital accounts are transferred to the credit side of the realization account. When assets are sold cash, bank account is debited and Realization account credited. On settling the debt Realization account is debited and Cash/Bank account is credited. In last if the total of the credit side exceeds the debit side, it means there is profit and that is transferred to the partner's capital accounts. In case of loss, the partner's capital account is debited and Realization A/c credited.

Hence, the correct answer is 'a loss'.

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