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?
Answer & explanation
Correct answer: option 4
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.