There was an unrecorded asset of ₹ 12,000 which was taken over by a partner at ₹ 10,500 at the time of dissolution of firm. Partner’s Capital Account will be debited by which amount?

₹10500

The correct answer is option 3: ₹10500

At the time of dissolution, when an unrecorded asset is taken over by a partner, the entry is made at the agreed value (realisation value), not the book value.

Here:

• Unrecorded asset value = ₹12,000 (not in books, so irrelevant for entry)
• Taken over by partner = ₹10,500

For an asset taken over by a partner-
Partner’s Capital A/c Dr. ₹10,500
   To Realisation A/c                   ₹10,500
 (with the amount taken over by partner)