Which of the following will not be shown in Realisation Account?
Answer & explanation
Correct answer: option 3
The correct answer is option (3)- Partner's Loan to the firm.
Partner's Loan to the firm will not be shown in Realisation Account.
Loan by a partner to the partnership firm is not an external liability. So, it will not be transferred to the realisation account. It is also not transferred to partner's capital account because it is paid after settling outside liabilities but before payment of capital. The journal entry for this-
Partner's loan A/c Dr.
To bank A/c