The Second Method of preparing Realisation Account. – InterviewSolution

1.	The Second Method of preparing Realisation Account.
Answer» This method is used when it is not possible to pay all the liabilities at one time. After closing Assets and Liabilities they are not transferred to Realisation account but they are kept open. After realising the money from assets and after the payment of liabilities, the closing balance (profit or loss) is transferred to Realisation account. The dissolution expense is debited to realisation account. The closing balance of Realisation account (profit or loss) is transferred to partners capital or current account in their profit and loss ratio.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?