Which Journal Entry will be recorded for realization of unrecorded asset at the time of dissolution of a Partnership Firm?

Bank Account Debit & Realization Account Credit.

The correct answer is Option (4) → Bank Account Debit & Realization Account Credit.

At the time of dissolution of a partnership firm, when an unrecorded asset (an asset not appearing in the books) is realized (sold) for cash:

• Cash (Bank) increases → Debit Bank Account

• The proceeds are considered a realization of firm’s asset → Credit Realisation Account