Question

In partnership unrecorded liability is shown in new balance sheet in

Answer 1

"The Unrecorded Liabilities, are the liabilities in a partnership which have not been shown in the books of accounts. But at the time of dissolution of a partnership, these liabilities are to be paid off too. Thus, the entry for it will be,

Realisation A/C Dr.

     To Cash A/C.

But, if the liabilities are taken by a partner, the entry will be

Realisation A/C Dr.

    To Partner’s Capital A/C"