HomeTestsSearchRankProfile
easyMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

In the case of dissolution of a partnership firm, unrecorded liabilities when paid are shown in:

  1. A
    Debit of Realisation Account
  2. B
    Credit of Realisation Account
  3. C
    Debit of Bank Account
  4. D
    Credit of Capital account.

Solution & Step-by-step Explanation

When an unrecorded liability is discharged during dissolution, cash flows out of the business, and it is logged as a settlement expense. The standard entry passed is to debit the Realisation Account and credit the Bank Account.

Practice this question

Try it yourself before checking the explanation above.

In the case of dissolution of a partnership firm, unrecorded liabilities when paid are shown in:
A
Debit of Realisation Account
B
Credit of Realisation Account
C
Debit of Bank Account
D
Credit of Capital account.

Share This Question

Related Questions

Ready for a Full Test?

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

Discussion