Realisation A/c

This query is : Resolved

Nishant Kumar (Querist)
Follow

10 May 2011 It is said that Realisation A/c is a nominal a/c because it is used to find out Profit/Loss at the time of Amalgamation or Dissolution of Partnership. But, the rule for nominal a/cs, i.e. Debit all expenses and losses and Credit all Incomes and Gains is not followed here! Infact, there's no nominal a/c which is either debited or credited to Realisation A/c. It contains all personal and real a/cs appearing in the B/S. Then, how can it be a nominal a/c. Is its nature something different? Please help.

prashant bhardwaj

prashant bhardwaj (Expert)
Follow

10 May 2011 dear Nishant,
while preparing Realisation going concern concept is not applied so all accounts are of nominal nature except capital accounts

Message likes : 1 times