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easyMSQCUET Accountancy 2025 30 May Shift 12026Accountancy
1 mark

Unrecorded liabilities when paid are recorded in:

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

Solution & Step-by-step Explanation

When an unrecorded liability is paid off by the firm during dissolution, the accounting double-entry is:


Hence, this transaction is simultaneously posted to the Debit side of the Realisation Account and the Credit side of the Bank Account.

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Unrecorded liabilities when paid are recorded in:
A
Debit of Realisation Account
B
Debit of Bank Account
C
Credit of Realisation Account
D
Credit of Bank Account

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