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Home Questions V6JQVQ2533
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

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

Options:

Debit of Realisation A/c

Debit of Bank A/c

Credit of Realisation A/c

Credit of Bank A/c

Correct Answer:

Credit of Realisation A/c

Explanation:

The correct answer is option 3- Credit of Realisation A/c.

Unrecorded assets when taken over by a partner are shown in Credit of Realisation A/c.

When any partner takes over the asset then the following journal entry is passed-
Partner’s Capital A/c Dr.
     To Realisation A/c

This journal entry shows that the partner takes the asset due to which his capital that will be returned by the company is lowered by this amount of asset.

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