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
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.
Question : On firm’s dissolution, when a partner voluntarily gives his personal asset to firms’ creditor as payment, the account credited will be :
Question : On dissolution of a firm, a partner paid Rs. 6,500 for firm’s realisation expenses. Which account will be debited?
Question : When a partner pays unrecorded liability is --------------------debited and concerned ------------------------is credited.
Question : Unrecorded liabilities, when paid on the dissolution of a firm, are credited to
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