Question

Realisation A/c is a ______.

Options

• Nominal A/c

• Real A/c

• Personal A/c

• Real A/c as well as Personal A/c

Answer 1

Realisation A/c is a nominal A/c.

Explanation:

The Realisation Account is a Nominal Account because it is used to transfer the assets and liabilities to their respective accounts during the dissolution of a firm. It records the profit or loss on realisation, which is then transferred to the partner’s capital accounts. As a nominal account, it deals with business transactions like gains, losses, and expenses that occur during the dissolution process.