Which among the following are shown in Realisation A/c?

A. Investment Fluctuation Reserve

B. Provision for Doubtful Debts

C. General reserve appearing in Balance Sheet

D. Asset taken over by partner for settlement of dues.

E. Dissolution expenses paid by one partner on behalf of other partner.

Choose the correct answer from the options given below:

A, B, D only

The correct answer is option 2- A, B, D only.

A. Investment Fluctuation Reserve- This is transferred to realisation account. When an asset is transferred to realisation account then its corresponding provision or reserve appearing on the liability side is also transferred. The journal entry for this- Investment Fluctuation Reserve Dr. To Realisation A/c.

B. Provision for Doubtful Debts- This is transferred to realisation account. When an asset is transferred to realisation account then its corresponding provision or reserve appearing on the liability side is also transferred. The journal entry for this- Provision for Doubtful Debts Dr. To Realisation A/c.

C. General reserve appearing in Balance Sheet- This is NOT transferred to realisation account. This is an accumulated reserve which is transferred to partners capital account.

D. Asset taken over by partner for settlement of dues. This is transferred to realisation account. As asset is already transferred to realisation account so when any partner took over the asset, the following journal entry is passed- Concerned partners Capital A/c Dr. To realisation A/c

E. Dissolution expenses paid by one partner on behalf of other partner. This is NOT transferred to realisation account. As only partners are involved in this transaction so their capital account are adjusted according to that. There is no role of realisation account.