Unrecorded assets when taken over by a partner are shown on:
Answer & explanation
Correct answer: option 3
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.