Unrecorded liabilities when paid are recorded in:
- ADebit of Realisation Account
- BDebit of Bank Account
- CCredit of Realisation Account
- DCredit 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.
Hence, this transaction is simultaneously posted to the Debit side of the Realisation Account and the Credit side of the Bank Account.