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
Answer (1)
24th 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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