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Shift 02/06/2023 3:30 PM - 6:30 PM
Correct Answer
Unrecorded liabilities paid off by partners during the dissolution of a partnership are typically shown on the debit side of the Realisation Account.
In the Realisation Account, liabilities paid are considered expenses or outflows, and they are recorded on the debit side. The credit side of the Realisation Account is used to record the realization of assets and the distribution of those realized assets to partners.
So, the correct answer is indeed option 1: Debit side of Realisation Account.
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