Question

Realisation account
adjustments
Debtor Realised RS *****
WHICH Side Entry Dr Cr ​

Answer 1

Answer:

The object of preparing Realisation account is to close the books of accounts of the dissolved firm and to determine profit or loss on the Realisation of assets and payment of liabilities. It is prepared by: Transferring all the assets except Cash or Bank Account to the debit side of the account.

Answer 2

Answer:

Accounting Treatment of Dissolution: Realisation Account, Capital Accs

1] Realisation Account It is prepared by: Transferring all the assets except Cash or Bank Account to the debit side of the account. Transferring all the liabilities except Partner's Loan Account and Partners' Capital Accounts to the credit side of the account. Crediting the Receipt on the sale of assets to the account.