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Home Questions J5CBN59M8Q
Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

The Journal entry for payment of unrecorded liability at the time of admission of partner is :

Options:

Unrecorded liability A/c Dr. XXX
    To Revaluation A/c XXX

Unrecorded liability A/c Dr. XXX
    To Cash A/c XXX

Revaluation  A/c Dr. XXX
    To Cash A/c XXX

Liability A/c Dr. XXX
    To Revaluation A/c XXX

Correct Answer:

Revaluation  A/c Dr. XXX
    To Cash A/c XXX

Explanation:

The correct answer is option 3- Revaluation  A/c Dr. XXX To Cash A/c XXX

When this liability is paid off. Cash is reduced so it is credited and this liability has already transferred to revaluation account so revaluation account is debited. So journal entry is-
Revaluation A/c Dr.
    To Cash A/c

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