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Why is the balance at bank never transferred to the realisation account on the dissolution of a partnership? - Accounts

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प्रश्न

Why is the balance at bank never transferred to the realisation account on the dissolution of a partnership?

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उत्तर

The realisation account is opened at the time of a firm’s dissolution to record the sale of assets, settlement of liabilities, and to calculate any resulting profit or loss. Since cash at bank is already a realized asset and does not lead to any gain or loss, it is not included in the realisation account.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 5: Dissolution of Partnership Firm - SHORT ANSWER QUESTIONS [पृष्ठ ५.७३]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 5 Dissolution of Partnership Firm
SHORT ANSWER QUESTIONS | Q 5. | पृष्ठ ५.७३
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