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When an unrecorded liability is paid by the firm at the time of dissolution, which accounting entry is passed?

Answer and explanation

Correct answer: Realisation Account डेबिट और Cash/Bank Account क्रेडिट

When an unrecorded liability is paid, Realisation Account is debited because the payment is a dissolution-related loss or expense, and Cash/Bank Account is credited because cash is paid out. Option B reverses the treatment, while option D is incorrect because the payment must be recorded. Exam tip: For an unrecorded liability paid by the firm, remember Realisation Dr. and Cash/Bank Cr.

Related tags

Partnership DissolutionRealisation AccountUnrecorded LiabilitiesAccounting EntriesClass 12 AccountancyDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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