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easyMCQCUET Accountancy 2025 3 June Shift 12026Accountancy
1 mark

After transferring liabilities like creditors and bills payables in the Realization 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
    Half paid

Solution & Step-by-step Explanation

According to accounting guidelines for the dissolution of a partnership firm, if there is no explicit information provided regarding the settlement of an external liability, it must be assumed that the liability was settled at its full book value.

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After transferring liabilities like creditors and bills payables in the Realization 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
Half paid

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