In case of Fixed Capital Method, at the time of dissolution of a firm, An unrecorded asset are taken over by a partner, which Journal Entry will be recorded in the books of the Partnership Firm:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Partners's Current Account A/c debited and Realisation A/c credited
When a partner takes over an asset on dissolution, the partner is debited with its value and Realisation Account is credited, just as if the asset had been sold to him. An unrecorded asset is treated the same way. Under the fixed capital method such items do not touch the fixed capital account; they go to the partner’s current account. So the entry is Partner’s Current A/c Dr., To Realisation A/c.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
