Arrange the steps in order while preparing Realisation A/c in case of dissolution of a partnership firm.
A. Transfer of Assets & Liabilities
B. Sale of Assets
C. Payment of Liabilities
D. Transfer of Profit & Loss to Partners' Capital A/c
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, B, C, D
The Realisation Account is written up in this order:
A. Transfer of assets and liabilities to the Realisation Account
B. Sale of assets
C. Payment of liabilities
D. Transfer of the profit or loss on realisation to the partners’ capital accounts
NCERT (2026-27 edition):
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