Practicing Success
Unrecorded liabilities, when paid by the partnership firm at the time of dissolution of the firm are shown in which account? |
Credit side of Partner's capital A/c Credit side of Realisation A/c Debit side of Bank A/c Debit side of Realisation A/c |
Debit side of Realisation A/c |
The correct answer is option 4- Debit side of Realisation A/c. * For payment of liabilities, the following journal entry is passed- As the liability is a loss for the firm so realisation account is debited and its payment will reduce the bank balance so bank account is credited. |