Unrecorded assets when taken over by a partner are shown in : Option 1: Debit of Realisation Account Option 2: Debit of Bank Account Option 3: Credit of Realisation Account Option 4: Credit of Bank Account

Answer: Credit of Realisation Account. Solution: During dissolution of a partnership firm, when unrecorded assets (assets not appearing in the books) are taken over by a partner, they need to be recorded in the Realisation Account. Since these assets were never recorded in the books initially, they were never transferred to the Realisation Account through the normal asset transfer entry. When a partner takes over these unrecorded assets, the accounting treatment is: Partner's Capital A/c Dr. To Realisation A/c The Realisation Account is credited because: - The partner is being charged for taking over these assets (debiting their capital account) - This represents a benefit to the Realisation Account, similar to a sale of assets - The firm receives consideration from the partner in the form of a reduction in their claim against the firm The logic is simple: when any asset (recorded or unrecorded) is taken over by a partner, it benefits the realisation process as the firm doesn't need to sell that asset externally. This benefit is shown by crediting the Realisation Account. Correct Answer: Option 3 - Credit of Realisation Account

Partnership

Dissolution

Easy

common

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

Debit of Realisation Account

Debit of Bank Account

Credit of Realisation Account

Credit of Bank Account

✅ Correct Option: 3

During dissolution of a partnership firm, when unrecorded assets (assets not appearing in the books) are taken over by a partner, they need to be recorded in the Realisation Account.

Since these assets were never recorded in the books initially, they were never transferred to the Realisation Account through the normal asset transfer entry.

When a partner takes over these unrecorded assets, the accounting treatment is:

Partner's Capital A/c Dr.

To Realisation A/c

The Realisation Account is credited because:

The partner is being charged for taking over these assets (debiting their capital account)
This represents a benefit to the Realisation Account, similar to a sale of assets
The firm receives consideration from the partner in the form of a reduction in their claim against the firm

The logic is simple: when any asset (recorded or unrecorded) is taken over by a partner, it benefits the realisation process as the firm doesn't need to sell that asset externally. This benefit is shown by crediting the Realisation Account.

Correct Answer: Option 3 - Credit of Realisation Account

2025: 3 June Shift 2

Arrange the following in correct order in which assets of the firm can be used in the settlement.

(A) Residue shall be divided between the partners in their profit sharing ratio.

(B) In paying the partners proportionately what is due to him/her on account of capital.

(D) In paying the debts of the firm to the third parties.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

On dissolution of the firm, partner's capital accounts are closed through-

2025: 16 May Shift 1

For taking over investment, Bharat's capital will be

2026: 24 May Shift 1

In case of dissolution, application of assets of the firm shall be applied in a particular manner and order.

Arrange the following steps in a sequence:

(A) In paying to each partner proportionately what is due to him on account of capital.

(B) The residue, if any, shall be divided among the partners in their profit sharing ratio.

(D) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital i.e. Partner's Loan

Choose the correct answer from the options given below:

2026: 23 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
	Item	shown in
A.	Profit on realisation	I. Debit side of Partners' Capital A/c
B.	Sale of assets	II. Debit side of Realisation A/c
C.	Fictitious assets	III. Credit side of Partners' Capital A/c
D.	Settlement of unrecorded liability	IV. Credit side of Realisation A/c

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Select out of the following that is not considered as one of the modes of reconstitution of a partnership firm.

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

Solution

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