Question

Unrecorded assets when taken over by a partner are shown in ____________________.

• A. Debit of Realisation Account.
• B. Debit of Bank Account.
• C. Credit of Realisation Account.
• D. Credit of Bank Account.

Answer 1

The correct option is C Credit of Realisation Account.

Unrecorded assets is an asset , the value of which has been written off in the books of accounts but the asset is still in usable position. The accounting treatment for unrecorded assets is:

(a) When the unrecorded asset is sold for cash

Cash A/c Dr.

To Realisation A/c

(b) When the unrecorded asset is taken over by any partner

Partners' Capital A/c Dr.

To Realisation A/c