When a firm is broken down, it brings about shutting considering all the things. Resources are auctioned off and liabilities are paid off. To keep up a record of every such action, an ostensible record is prepared which is called a Realisation Account. Its primary objective is to decide the benefit or misfortune that occurs because of settling off resources and liabilities. Whether this activity brings about benefit or misfortune, it gets moved to the Partners' Capital Account with their unique benefit-sharing proportion.