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Paying off the Debts (Dissolution)

Unrecorded Li...

Question

Unrecorded Liability paid at the time of dissolution is debited to and credited to _.

A

Realisation A/c, Cash A/c

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B

Cash A/c, Realisation A/c

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C

Cash A/c, Partner's Capital A/c

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D

Partner's Capital A/c, Cash A/c

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Solution

The correct option is A
Realisation A/c, Cash A/c

Unrecorded Liability paid at the time of dissolution is debited to Realisation A/c and credited to Cash A/c.

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Paying off the Debts (Dissolution)

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