Dissolution of Partnership Firm · Class 12 · CBSE · Commerce Accountancy
An unrecorded liability of ₹12,000 is paid by the firm on dissolution. Which account will be debited and for what amount?
Practice question from Dissolution of Partnership Firm (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-425527
An unrecorded liability of ₹12,000 is paid by the firm on dissolution. Which account will be debited and for what amount?
- A.Cash Account, ₹12,000
- B.Realisation Account, ₹12,000Correct answer
- C.Unrecorded Liability Account, ₹12,000
- D.Partners’ Capital Accounts, ₹12,000
Solution
Payment of an unrecorded liability is treated as a realisation expense. The entry is Realisation Account Dr. ₹12,000 To Cash Account ₹12,000.
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