The Journal entry for payment of unrecorded liability at the time of admission of partner is :
Answer & explanation
Correct answer: option 3
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