Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

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

Options:

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Credit of Bank Account

Correct Answer:

Credit of Realisation Account

Explanation:

The correct answer is Option (3) → Credit of Realisation Account

When a partner takes over an unrecorded asset, entry is

Partner’s Capital A/c Dr

      To Realisation A/c.

This treats the takeover like a sale, so it appears on the credit side of the Realisation A/c.