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Question : The realization account is a

Option 1: nominal account

Option 2: real account

Option 3: personal account

Option 4: real as well as personal


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: nominal account


Solution : Answer = Nominal account

The Realization Account is a nominal account used to record gains or losses resulting from the sale of assets and settlement of liabilities during the dissolution of a partnership firm, reflecting the firm's financial position at termination. According to the traditional approach, expenses and losses are debited, and Income and gains are credited.
Hence, the correct option is 1.

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