Profit or loss of realisation account is transferred to ........

Profit or loss of realisation account is transferred to :

Profit & Loss Account

Capital Accounts of Partners

Balance Sheet

None of the Above

- The Realisation Account is used in the dissolution of a partnership to settle assets and liabilities.

- The profit or loss from the Realisation Account is not transferred to the Profit & Loss Account or the Balance Sheet.

- Instead, the profit or loss is divided among the partners according to their capital sharing ratio and transferred to their Capital Accounts.

Option:2, Capital Accounts of Partners is correct.

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