Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
Realisation account is which type of account?
Options:
Nominal A/c
Real A/c
Personal A/c
None of the above
Correct Answer:
Nominal A/c
Explanation:
A nominal account, known as the Realisation account is created to record the sale of such assets and the discharge of the liabilities. This account helps in ascertaining the profit or loss of the firm due to realisation of assets and liabilities at the time of termination of the business.