Read the following information and answer the questions.

Raina and Meena were partners in a firm sharing profits and losses equally. They dissolved their firm on 31st March, 2018.
On this date, the Balance Sheet of the firm, apart from realizable assets and outside liabilities showed the following:
Raina’s Capital ₹40,000 (Dr.)
Meena’s Capital ₹20,000 (Dr.)
Profit & Loss Account ₹10,000 (Dr.)
Raina’s loan to the firm ₹15,000
Contingency Reserve ₹7,000

On the date of dissolution of the firm:
(a) Raina’s loan was repaid by the firm along with interest of ₹500.
(b) The dissolution expenses of ₹1,000 were paid by the firm on behalf of Raina who had to bear these expenses.
(c) An unrecorded asset of ₹2,000 was taken over by Meena while Raina discharged an unrecorded liability of ₹3,000.
(d) The dissolution resulted in a loss of ₹60,000 from the realization of assets and settlement of liabilities.

The unrecorded asset taken by Meena will be recorded in which account?

Debited to Meena’s Capital Account

The correct answer is option 1- Debited to Meena’s Capital Account.

The unrecorded asset taken over by Meena will be recorded as:
Meens's Capital A/c Dr.
       To Realisation A/c.

This entry will reduce the capital balance of the partner by the asset amount.