how are unrecorded assets treated in realisation account - Accountancy - Dissolution of Partnership Firm

Question

how are unrecorded assets treated in realisation account?

Manisha Arora · Accepted Answer

Unrecorded Assets are those assets which do not appear in the Books
due to nay reason At the time of Dissolution, if Unrecorded Assets
realise any sum of money or is taken over by any Partner then the
following Journal Entry is to be Passed:

Journal
Entry

Date

Particulars
L F
Debit Amount
Rs
Credit Amount
Rs

When unrecorded Assets Sold

Cash/Bank A/c
Dr

To Realisation A/c

(Unrecorded Assets are sold)

When Unrecorded Asset taken over by
the Partner

Concerned Partner’s Capital A/c
Dr

To Realisation A/c

(Unrecorded Assets taken over by the
Partner)

	Journal Entry
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
		When unrecorded Assets Sold
		Cash/Bank A/c	Dr.
		To Realisation A/c
		(Unrecorded Assets are sold)

		When Unrecorded Asset taken over by the Partner
		Concerned Partner’s Capital A/c	Dr.
		To Realisation A/c
		(Unrecorded Assets taken over by the Partner)