Realisation Account

Accounting for Partnerships

MS: Akaun Realisasi · EN: Realisation Account · ZH: 变现账户

Meaning

The Realisation Account is an account opened on dissolution to record the sale of assets and the settlement of liabilities. The difference between the book value of the assets and the sale proceeds gives the profit or loss on realisation, which is shared by the partners in their profit-sharing ratio.

Example

Assets with a book value of RM60,000 are sold for RM50,000 in the Realisation Account, giving a loss on realisation of RM10,000 shared equally between two partners.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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