Question : When unrecorded liability is paid, ------------------is debited and ----------------Account is credited with the amount paid, it being in the nature of-------------------.
Option 1: liability, cash, profit
Option 2: Realization, cash, loss
Option 3: Realization, partner's capital account, loss
Option 4: None of the above
Correct Answer: Realization, cash, loss
Solution : Answer Realization, cash, loss.
When recorded and unrecorded liabilities are paid by the firm, then the realization account will be debited, and the cash or bank account will be credited with the same amount. It is the nature of loss. Hence, the correct option is 2.
Question : When a partner pays unrecorded liability is --------------------debited and concerned ------------------------is credited.
Question : When the unrecorded asset is taken by partners, it is debited to --------------------and credited to----------------------.
Question : Choose the correct Journal entry with respect to loan by Amit (Partner) for the following cases at the time of the firm's dissolution: The loan by Amit (Partner) is Rs. 50,000 and the Balance in his Capital Account (credit) is Rs. 25,000.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile