The Journal entry for payment of unrecorded liability at the time of admission of partner is:
1. Unrecorded liability a/c Dr XXX
To Revaluation a/c XXX
2. Unrecorded liability a/c Dr XXX
To Cash XXX
3. Revaluation a/c Dr XXX
To Cash XXX
4. Liability a/c Dr XXX
To Revaluation a/c XXX

This question was previously asked in

Shift 16/06/2023 3:30 PM - 6:30 PM

Attempt Online

Unrecorded liability a/c Dr XXX To Revaluation a/c XXX

Unrecorded liability a/c Dr XXX To Cash XXX

Revaluation a/c Dr XXX To Cash XXX

Liability a/c Dr XXX To Revaluation a/c XXX

Correct Answer

Revaluation a/c Dr XXX To Cash XXX

Detailed Explanation

When a previously unrecorded liability is paid at the time of admission of a new partner, you need to make a journal entry to account for this payment. The entry typically involves crediting the cash or bank account and debiting the revaluation account. Here's how you can record the journal entry:

Debit (Increase) the Revaluation : This is to recognize the liability that was previously unrecorded. Debiting it increases the liability on the books.

Credit (Decrease) the Cash or Bank Account: This reflects the cash or bank payment made to settle the liability. Crediting it reduces the cash or bank balance.

Get Dubuddy App

Practice on the go with our mobile app

The dissolution of partnership firm takes place in following order.
A. Outsiders' liablilities are paid out.
B. Partner's capital account is settled.
C. All assets and outside liabilities are transferred to realisation account
D. Partner's loan is repaid in proportion
E. Assets are sold and realised
Choose the correct answer from the options given below:

Match List I with List II LIST I LIST II A.Dissolution of Agreement I. When a partner becomes insane B.Dissolution by Court II. By the completion of venture C.Compulsory dissolution III. In accordance with contract between partners D. On happening of certain Contingencies IV. Event making it unlawful for partners to carry on business Choose the correct answer from the options given below:

In case of dissolution of partnership firm, all assets, except cash/bank and fictitious assets, are transferred to debit side of:

Which of the following are shown is Revaluation A/c?
A. Unrecorded Asset
B. Workmen Compensation Reserve
C. Decrease in fixed Asset
D. Increase in Inventory
E. Drawings of partner
Choose the correct answer from the options given below:

Test Series

CUET Subjects

Your CUET Journey Starts with DuBuddy

CUET ki Practice Means DuBuddy Pe Practice

The Journal entry for payment of unrecorded liability at the time of admission of partner is:1. Unrecorded liability a/c Dr XXX To Revaluation a/c XXX2. Unrecorded liability a/c Dr XXX To Cash XXX3. Revaluation a/c Dr XXX To Cash XXX4. Liability a/c Dr XXX To Revaluation a/c XXX