Maharashtra State BoardHSC Arts 12th Board Exam
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Select the most appropriate answer from the alternatives given below and rewrite the sentence. If any unrecorded liability is paid on dissolution of the firm ___________ is debited. - Book Keeping and Accountancy

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Question

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

If any unrecorded liability is paid on dissolution of the firm ___________ is debited.

Options
  • Cash/Bank Account 

  • Realization Account

  • Partners' Capital Account 

  • Partners' Loan Account

Solution

If any unrecorded liability is paid on dissolution of the firm, then Realisation account is debited.

Explanation: All the liabilities are paid-off by debiting the Realisation A/c. This is because all the payments are made through the Realisation Account, so that the true profits or losses can be ascertained.

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APPEARS IN

 Micheal Vaz Solution for Class 12 Accounts - Book Keeping and Accountancy (2019 (Latest))
Chapter 6: Dissolution of Partnership Firm
Exercise | Q: 5 | Page no. 182
 2017-2018 (March) (with solutions)
Question 1.3.4 | 1.00 mark
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Select the most appropriate answer from the alternatives given below and rewrite the sentence. If any unrecorded liability is paid on dissolution of the firm ___________ is debited. Concept: Dissolution of Partnership Firm.
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