Realisation account is the account prepared at the time of the dissolution of partnership firm.
The motive behind preparing the account is to calculate the profit & loss on the dissolution of firm.
It records realised value of assets and at what amount laibiities are settled.
The profit or loss is divided among the partners in their profit sharing ratio.
It is nominal account records sale of assets and settlement of liabilities.
Final Answer: Realisation account is a nominal account prepared at the time of dissolution of partnership firm.
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