Question

to the realisation amount
Unutilised Realisation expenses are to be​

Answer 1

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

Realisation Account is a account which is prepared when partnership dissolves.

• In this account firstly we write all the assets which are in the balance sheet and then we realise them at the value given according to the question.
• We firstly write all the liablilites as given in the balance sheet and then we make payment to them with the amount realised by selling assets.
• If there are any expenses related to realisation or there are realisation expenses these will be recorded in debit side of the realisation account.
• Realisation Account is a nominal account.
• After making all the adjustments if there is any profit then it will be distributed to the partners and it will be credited in the partners capital account and if there is loss then it will be debited in the partners capital account.