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:
- ANever paid
- BFully paid
- CPartly paid
- DPaid 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).