Question

If unrecorded assets are taken over by a partner, the entry will be:

• A. To Unrecorded Assets Account
• B. To Deceased Partner’s Capital Account
• C. To Realisation Account
• D. To Partner’s Capital Account

Hint:

When a partner takes over unrecorded assets, the value of those assets is credited to the partner’s capital account.

Answer 1

The Correct Option is D

If unrecorded assets are taken over by a partner, the journal entry is: \[ \text{Unrecorded Assets Account} \quad Dr. \quad \text{To Partner’s Capital Account} \] This entry reflects the transfer of unrecorded assets to the partner’s capital account. The value of the unrecorded assets is credited to the partner who takes them over.