Unrecorded asset of Rs.30,000 is taken by a partner and undertakes to pay his
wife’s loan of Rs.40,000 at the time of firm’s dissolution. What will be the net
effect of above on Realisation Account?
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Unrecorded assets is an asset , the value of which has been written off in the books of accounts but the asset is still in usable position. The accounting treatment for unrecorded assets is:
(a) When the unrecorded asset is sold for cash
Cash A/c Dr.
To Realisation A/c
(b) When the unrecorded asset is taken over by any partner
Partners' Capital A/c Dr.
To Realisation A/c
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