Question

Unrecorded liabilities, when paid are shown in

• A. Debit side of Realisation A/c
• B. Debit side of Bank A/c
• C. Credit side of Realisation A/c
• D. Debit side of Cash A/c

Hint:

Rule of thumb for Realisation Account: All realization expenses and payments of liabilities go to the \textbf{Debit} side. All receipts from the sale of assets (recorded or unrecorded) go to the \textbf{Credit} side.

Answer 1

The Correct Option is A