When company goes to liquidation process then realization account is created which is a temporary account and all assets and lialibilities are realized through this account and after realization there may be surplus or defeciancy in realization account.
A sales discount account is a contra-revenue account.
realization account... never heard but what i know if you sold something like equipment.. that equipment was realized.. so realization took place there
no
To prepare a realization account, start by listing all the assets and liabilities of the partnership or business being dissolved. Record the sale proceeds of assets on the credit side and any liabilities settled on the debit side. The difference between the total credit and debit will represent the profit or loss from the realization of assets. Finally, transfer the net result to the partners' capital accounts according to their profit-sharing ratio.
When company goes to liquidation process then realization account is created which is a temporary account and all assets and lialibilities are realized through this account and after realization there may be surplus or defeciancy in realization account.
A sales discount account is a contra-revenue account.
realization account... never heard but what i know if you sold something like equipment.. that equipment was realized.. so realization took place there
no
To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.
trade discount is for trade customer (who has an account with the supplier) discount allowed is for walk in customers (no account holders)
To prepare a realization account, start by listing all the assets and liabilities of the partnership or business being dissolved. Record the sale proceeds of assets on the credit side and any liabilities settled on the debit side. The difference between the total credit and debit will represent the profit or loss from the realization of assets. Finally, transfer the net result to the partners' capital accounts according to their profit-sharing ratio.
no
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
The main difference between, cash discount is shows in account book but tradediscount does not show in account book.
nominal account