Unrecorded Debtors, are realised at the time of dissolution of a Part…

The correct answer is Option (3) → Debit of Bank Account

An unrecorded asset (for example, debtors already written off as bad) does not appear in the books. When it is realised on dissolution, cash comes in, so Bank Account is debited; the gain belongs to the realisation process, so Realisation Account is credited: Bank A/c Dr., To Realisation A/c.

Option (1) Partners' Capital Account — Incorrect. Partners’ capital accounts are touched only when a partner takes over an asset, not when it is sold for cash.

Option (2) Partner's Current A/c — Incorrect. Current accounts are closed by transfer to the capital accounts on dissolution; cash realised never goes to them.

Option (4) Debit of Realisation Account — Incorrect. Money realised is a gain to the Realisation Account, so it is credited, not debited.

Note: In the original question, both Option (2) and Option (3) were correct as per the NTA Answer Key. The paper printed Option (2) as Credit of Realisation Account and Option (3) as Debit of Bank Account. For the benefit of students and to ensure a single answer, Option (2) has been changed to Partner's Current A/c.