Unrecorded assets when taken over by a partner on dissolution are shown in:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Credit of Realisation Account
An unrecorded asset is a gain for the firm. When a partner takes it over, the Realisation Account is credited (as for any asset realised) and the partner’s capital account is debited with its value.
Why the other options are incorrect
Option (1) Debit of Realisation Account — Incorrect. The debit side carries the recorded assets transferred to it and the liabilities paid.
Option (2) Debit of Bank Account — Incorrect. No cash comes in when a partner takes the asset.
Option (4) Credit of Bank Account — Incorrect. No cash is paid out either.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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