Question

Why loan account is not included in realisation account?

Answer 1

Realisation account is prepared at the time of dissolution of partnership firm and at that time business first liable to pay outsiders dues, then partners loan and next the retain earnings in business goes to partners acc to their capital contribution ratio in the business.
.

While preparing Relaisation account, loan account can't prepared bcx it won't be justified to pay anything related to partner first when our dues to outsiders are pending.