Unrecorded Liabilities when paid are shown in:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) :Debit of Realisation Account
On paying an unrecorded liability, entry is:
Realisation A/c Dr → To Bank/Cash A/c.
So it appears on the debit side of Realisation A/c (and credit of Bank/Cash).
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