CUET Preparation Today
At the time of dissolution, it was found out that there is an unrecorded liability of ₹15,000 and an unrecorded asset of ₹18,000. The firm gave this unrecorded asset against the unrecorded liability. How will it be treated? |
Realisation would be Debited by ₹18,000 and Credited by ₹15,000. Bank Account would be Debited by ₹18,000 and Credited by ₹15,000 Profit on Realisation would be ₹3,000 No entry would be passed |
No entry would be passed |
The correct answer is option 4- No entry would be passed. No Entry is passed if unrecorded asset is given against a recorded or unrecorded liability. |
