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 : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following
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