When all external liabilities are fully paid during the dissolution of a firm, what is the immediate accounting result?

Correct answer: दायित्व खातों का शेष समाप्त हो जाता है

Once all external liabilities are paid, they are no longer outstanding and the balances of the liability accounts are extinguished. The payment is generally recorded by debiting the Realisation Account and crediting the Bank/Cash Account. This payment does not automatically eliminate a loss on realisation; that profit or loss is determined from the final balance of the Realisation Account. Exam tip: distinguish between settlement of a liability and determination of realisation profit or loss.