In case of profit on realisation, A/c is debited and A/c is credited.

Partner's Capital (Individually), Realisation

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Realisation, Partner's Capital (Individually)

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Realisation, Bank

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Bank, Partner's Capital

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Solution

The correct option is C Realisation, Partner's Capital (Individually)
Realisation account is prepared at the time of dissolution of a firm to know the profit/loss at the time of dissolution of the firm. All assets except cash/bank are transferred to the debit side of realisation account. In case any asset has a corresponding provision or reserve that is transferred to the credit side of realisation account. Similarly, all outside liabilities like creditors and loans etc. are transferred to the credit side of realisation account. After this money received on sale of assets are recorded on the credit side of realisation account and all payments made to outside parties are recorded on the debit side of realisation account. Realisation A/c is debited while Partner's Capital (Individually) A/c is credited for transfer of profit on realisation.

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Prepare Realisation Account , Partner's Capital Accounts and Bank Account.

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In case of profit on realisation, ________ A/c is debited and ________ A/c is credited.

In case of profit on realisation, A/c is debited and A/c is credited.