Explain unrecorded asset and liabilities

i) Accounting Treatment for Unrecorded Assets

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

a) When the unrecorded asset is sold for cash

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

ii) Accounting Treatment for Unrecorded Liabilities

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

a) When the unrecorded liability is paid off

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