Question

    Which of the following are correct regarding Realization Accounts?

    I.A realization account is an account that is used to record the proceeds of the sale of assets during the liquidation of a partnership.

    II.It’s a kind of permanent account.

    III.It is used to distribute the cash proceeds of the sale of partnership assets to the partners in accordance with their respective profit and loss sharing ratios.

    A I and II only Correct Answer Incorrect Answer
    B II and III only Correct Answer Incorrect Answer
    C I and III only Correct Answer Incorrect Answer
    D All are correct Correct Answer Incorrect Answer

    Solution

    it’s a kind of temporary account.

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