Question

Debit balance in realisation account. Answer in a word / phrase / term.

Answer 1

ʜᴇʏ ᴍᴀᴛᴇ✌️✌️


ᴅᴇʙɪᴛ ʙᴀʟᴀɴᴄᴇ ɪɴ ʀᴇᴀʟɪsᴀᴛɪᴏɴ ᴀᴄᴄᴏᴜɴᴛ.⤵️⤵️⤵️

ʀᴇᴀʟɪsᴀᴛɪᴏɴ ᴘʀᴏғɪᴛ.

Answer 2

Debit balance in realisation account is known as realisation loss.

• Realization account refers to an account opened by the company when it goes through dissolution to record the profit from the sale of property and losses suffered from liability settlement.
• A realized loss is the loss acknowledged by selling assets at a rate below the original purchase price. Realized loss occurs when an asset acquired at a price or book value rate is then charged for a value below its book value.
• A realized loss is a decline in the value of an asset sold. This concept is the opposite of paper loss or unrealized loss which only becomes a realized loss when the security is actually sold.