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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A, B, D only
The Realisation Account takes all assets (other than cash, bank and fictitious assets) and all outside liabilities, with the provisions and funds that relate to the assets. Accumulated profits and reserves go to the partners’ capital accounts instead.
(A) Investment Fluctuation Reserve — True. It is transferred to the credit of the Realisation Account along with the investments.
(B) Provision for Doubtful Debts — True. Debtors go to the debit at gross value and the provision to the credit.
(C) General reserve appearing in Balance Sheet — False. It is an accumulated profit, transferred to the partners’ capital accounts.
(D) Asset taken over by partner for settlement of dues. — True. The partner’s capital account is debited and the Realisation Account credited.
(E) Dissolution expenses paid by one partner on behalf of other partner. — False. A payment between two partners is their private matter and does not pass through the firm’s Realisation Account.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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