State the accounting treatment for: i Unrecorded assets ii Unrecorded liabilities - Accountancy - Dissolution of Partnership Firm

Question

State the accounting treatment for:
i Unrecorded assets
ii Unrecorded liabilities

Saurabh Mehta · Accepted Answer

i) Accounting Treatment for Unrecorded
Assets
Â Unrecorded asset 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 asset is:
a) When the unrecorded asset is sold for
cash

Cash A/c

Dr

To Realisation
A/c

(Unrecorded
assets sold for cash)

b) When the unrecorded asset is taken over by
any partner

Partner's
Capital A/c

Dr

To Realisation
A/c

(Unrecorded
asset taken over by the partner)

ii) Accounting Treatment for
Unrecorded Liabilities
Â Unrecorded liabilities are those
liabilities which are not recorded in the books of account The
accounting treatment for unrecorded liability is:
a) When the unrecorded liability is paid
off

Realisation
A/c

Dr

To Cash A/c

(Unrecorded
liability paid in cash)

b) When the unrecorded liability is taken over
by a partner

Realisation
A/c

Dr

To Partner's
Capital A/c

(Unrecorded
liabilityÂ  taken over by the partner)

Cash A/c		Dr.
	To Realisation A/c
(Unrecorded assets sold for cash)

Partner's Capital A/c		Dr.
	To Realisation A/c
(Unrecorded asset taken over by the partner)

Realisation A/c		Dr.
	To Cash A/c
(Unrecorded liability paid in cash)

Realisation A/c		Dr.
	To Partner's Capital A/c
(Unrecorded liability taken over by the partner)

State the accounting treatment for: i. Unrecorded assets ii. Unrecorded liabilities

State the accounting treatment for:

i. Unrecorded assets

ii. Unrecorded liabilities