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Why is 'Realisation Account' Prepared? - Accountancy

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प्रश्न

Why is 'Realisation Account' prepared?

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उत्तर

In order to record the transactions related to sale of assets and discharge of liabilities, Realisation Account is prepared. It is a nominal account. The main motive to prepare Realisation Account is to ascertain the profit or loss due to the realisation of assets and settlement of liabilities at the time of dissolution of a Partnership firm.

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