HomeTestsSearchRankProfile
easyMCQCUET 2025 31 May Shift 12026CUET Accountancy
1 mark

After transferring liabilities like creditors and bills payables in the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:

  1. A
    Never paid
  2. B
    Fully paid
  3. C
    Partly paid
  4. D
    Paid according to Capital contribution

Solution & Step-by-step Explanation

In accordance with standard accounting principles for the dissolution of a firm, if the problem statement remains silent regarding the settlement or payout value of external liabilities transferred to the Realisation Account, it is mandatorily assumed that they are settled at their book value (fully paid).

Practice this question

Try it yourself before checking the explanation above.

After transferring liabilities like creditors and bills payables in the Realisation Account, in the absence of any information regarding their payment, such liabilities are treated as:
A
Never paid
B
Fully paid
C
Partly paid
D
Paid according to Capital contribution

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across CUET Accountancy.

Discussion