Question

Which of the following will not be shown in Realisation Account?

• A. Unrecorded Asset realised
• B. Unrecorded Liabilities paid off
• C. Partner’s Loan to the firm
• D. Realisation Expenses

Hint:

Realisation Account records only assets, liabilities, and expenses related to dissolution, not partners’ loans.

Answer 1

The Correct Option is C

Step 1: Understand Realisation Account
Realisation Account records assets and liabilities relating to dissolution of the firm.
Unrecorded assets realised (A) and unrecorded liabilities paid off (B) are recorded here.
Realisation expenses (D) are also recorded here as expenses incurred in the process.
Partner’s loan to the firm (C) is a separate account and not recorded in Realisation Account.
Step 2: Conclusion
Hence, Partner’s Loan to the firm is not shown in Realisation Account.