Question : Unrecorded liability, when paid on dissolution of a firm is debited to :
Option 1: Partner’s Capital A/c
Option 2: Liabilities A/c
Option 3: Realisation A/c
Option 4: Asset A/c

Question

Question : Unrecorded liability, when paid on dissolution of a firm is debited to :

Option 1: Partner’s Capital A/c

Option 2: Liabilities A/c

Option 3: Realisation A/c

Option 4: Asset A/c

Team Careers360 · Accepted Answer

Correct Answer: Realisation A/c

Solution : Liabilities that are not shown on the balance sheet but nevertheless exist in the company are referred to as unrecorded liabilities. These liabilities are credited to the Realisation account even if they are not recorded in the books since they must be paid off at the moment of dissolution.

Hence the Correct answer is option 3.

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Question : Unrecorded liability, when paid on dissolution of a firm is debited to :Option 1: Partner’s Capital A/cOption 2: Liabilities A/cOption 3: Realisation A/cOption 4: Asset A/c

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Question : Unrecorded liability, when paid on dissolution of a firm is debited to :
Option 1: Partner’s Capital A/c
Option 2: Liabilities A/c
Option 3: Realisation A/c
Option 4: Asset A/c