Question

Which of the following is not transferred to Realisation Account:

Options

• Balance of Cash Account

• Balance of Reserves

• Balance of Profit & Loss Account

• All of the Above.

Answer 1

All of the Above.

Explanation:

A realisation account is used during the dissolution of a partnership firm to record the sale of assets and payment of liabilities. It’s important to understand that items like cash, reserves, and profit and loss accounts are not transferred to this account because they represent existing balances that are dealt with separately during the dissolution process.