An unrecorded liability of ₹7,000 was paid. What effect will this transaction have on the Realisation Account?

Correct answer: ₹7,000 का डेबिट

Payment of an unrecorded liability is an actual payment made on dissolution, so ₹7,000 is debited to the Realisation Account. This debit reduces the realisation profit or increases the realisation loss. A credit is incorrect because credits generally arise when assets are transferred or liabilities are recorded in the Realisation Account. Exam tip: When an unrecorded liability is paid, debit the Realisation Account with the amount actually paid.