Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Select the Most Appropriate Answer from the Alternative Given Below and Rewrite the Sentence. - Book Keeping and Accountancy

MCQ

Select the most appropriate answer from the alternative given below and rewrite the sentence.

Account is debited when unrecorded liability is brought into business.

Options

  • liability

  • revaluation

  • capital

  • current

Advertisement Remove all ads

Solution

Revaluation Account is debited when unrecorded liability is brought into business.

Explanation: The Revaluation Account is debited when unrecorded liability is brought into business. An unrecorded liability is one which was earlier omitted from the records and is now being considered (i.e. recorded). This leads to increase in the amount of liabilities and so, the Revaluation Account is debited.

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise | Q 1 | Page 107
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×