Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Unrecorded liabilities when paid are debited to which account at the time of dissolution of partnership firm?

Options:

Realisation A/c

Revaluation A/c

Either option 1 or 2

None of these

Correct Answer:

Realisation A/c

Explanation:

For transfer of liabilities-
All external liability accounts including provisions, if any, are closed by transferring them to the credit of Realisation account.
Liabilities (individually) Dr.
   To Realisation A/c