Unrecorded assets when taken over by a partner are shown in :

The correct answer is Option (4) → Credit of Realisation A/c

An unrecorded asset is not in the books, so it is not transferred to the Realisation Account at book value. When a partner takes it over, the Realisation Account gains its value, and the entry is: Partner’s Capital A/c Dr. To Realisation A/c. The asset therefore appears on the credit side of the Realisation Account.

Option (1) Debit of Bank A/c — Incorrect. No cash is received when a partner takes the asset over.

Option (2) Debit of Realisation A/c — Incorrect. The debit side carries the assets transferred and liabilities paid.

Option (3) Credit of Bank A/c — Incorrect. Nothing is paid out.

Option (4) Credit of Realisation A/c — Correct.