Unrecorded liability when paid on dissolution of a firm is debited to ........

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Unrecorded liability, when paid on dissolution of a firm is debited to :

Partner’s Capital A/’cs

Realisation A/c

Liabilities A/c

Asset A/c

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Explanation:

- Partner’s Capital A/cs: This is used to adjust the final balances of the partners' capital accounts during dissolution. It is not typically used for recording liabilities.

- Realisation A/c: This account is used to record all assets and liabilities that are settled during the dissolution of a firm. It captures any gains or losses from selling assets and paying off liabilities, including unrecorded ones.

This is the correct answer when paying unrecorded liabilities during dissolution.

- Liabilities A/c: This account usually records known liabilities of a business, rather than unrecorded or previously undisclosed ones.

- Asset A/c: This involves recording assets of the business and their realizations. It is not about settling liabilities.