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