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Partnership - sale of firm

Accountancy

In this question why unrecorded liability is not treated as loss and also not debited in realization account. In previous examples unrecorded asset is treated as gain in dissolution problem. That's why I'm asking

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Shankara Vel

CA Final

★ 4K+

19-May-23 09:33

335

Answers (1)

Best Answer

The unrecorded liability is being taken over by the company. So it automatically adjusts the purchase consideration.

CA Suraj Lakhotia

Admin

21-May-23 13:00