Question

can unrecorded asset settled with unrecorded liability?​

Answer 1

Answer:

Unrecorded liabilities are those liabilities which are not recorded in the books of account. The accounting treatment for unrecorded liability is:

(a) When the unrecorded liability is paid off:

Realisation A/c Dr.

To Cash A/c

(b) When the unrecorded liability is taken over by a partner

Realisation A/c Dr.

To Partner's Capital A/c