An unrecorded asset was valued at ₹20,000. On firm's dissolution, it was sold for 52%. Realisation account will be credited with:

₹10,400

The correct answer is option 1- ₹10,400.

Asset value = 20,000
Realisation value = 52%
Realised amount = 20,000 x 52/100
                           = 10,400

Journal entry on realisation-
Bank A/c Dr.   ₹10,400
   To Realisation A/c   ₹10,400
(Unrecorded asset realised)

The Bank account is debited as the bank balance is increased by 52% and realisation account is credited as it is a gain for the firm.