Unrecorded assets when taken over by a partner are shown in
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Shift 31/05/2023 3:30 PM - 6:30 PM
A
Debit of Realisation A/C
B
Debit of bank A/C
C
Credit of Realisation A/C
D
Credit of Bank A/C
Correct Answer
Credit of Realisation A/C
Detailed Explanation
When an unrecorded asset is taken by a partner during the dissolution of a partnership, you need to record it in the journal with an appropriate entry. The entry should reflect the addition of the asset to the partner's capital. Here's the journal entry:
- Partner's Capital A/C (Name of the Partner) Dr.
- To Realisation A/C
In this entry:
- Debit the partner's capital account with the value of the unrecorded asset. This increases the partner's capital.
- Credit the Realisation account to recognize its addition to the partner's capital.
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More CUET Questions
1
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