At the time of dissolution, an unrecorded liability of ₹5,200 is discovered and paid in cash. What effect will this have on the Realisation Account?

Correct answer: वसूली हानि ₹5,200 से बढ़ेगी

When an unrecorded liability is paid, ₹5,200 is debited to the Realisation Account and cash is credited. This increases the expenses of realisation and therefore increases the realisation loss by ₹5,200. Hence, option B is correct. Exam tip: An unrecorded liability discovered and paid during dissolution is debited to the Realisation Account, not directly to the partners’ capital accounts.