What is the name of the liability which

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

What is the name of the liability which is not shown in the balance sheet, but paid at the time of dissolution of the partnership firm?

Options:

Creditors

Bills payable

Unrecorded liability

None of these

Correct Answer:

Unrecorded liability

Explanation:

* For settlement of any unrecorded liability-
Realisation A/c Dr.
To Bank A/c