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Question
Unrecorded liability when paid on the dissolution of a firm is transferred to ______
Options
Realization Account
Partners' Capital Accounts
Liability Account
None of the above
MCQ
Fill in the Blanks
Solution
Unrecorded liability when paid on the dissolution of a firm is transferred to Realization Account.
Explanation:
Unrecorded liabilities are not recorded in the book, but they must be discharged at the time of dissolution and are thus debited to the Realisation A/c.
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