Question

In what proportion is the balance on Realisation Account transferred to Partner's Capital Account? (Answer in one sentence)

Answer 1

HEY....


REALISATION BALANCE TRANSFER TO PARTNER CAPITAL AC IN THE RATIO OF OLD PARTNERS.

Answer 2

The balance on Realisation Account transferred to Partner's Capital Account in profit sharing ratio.

• All bank books are closed upon a company's breakup, all properties are sold, and all debts are paid off. A marginal account called the realisation account is opened to record the sale of assets and discharge of liabilities
• The balance on the Realization Account was transferred to the Capital Account of the Partner in its profit-sharing ratio. If the partnership deed is silent, the profits and losses resulting from the account will be distributed equally among the partners.