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What is the accounting treatment for un recorded asset on dissolution of a firm? |
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Answer» ing Treatment for Unrecorded ASSETS 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 cashCash A/cDr. To Realisation A/c (Unrecorded assets sold for cash) b) When the unrecorded asset is taken over by any partnerPartner's CAPITAL A/cDr. To Realisation A/c (Unrecorded asset taken over by the partner) ii) Accounting Treatment for Unrecorded Liabilities 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 offRealisation A/cDr. To Cash A/c (Unrecorded liability paid in cash) b) When the unrecorded liability is taken over by a partnerRealisation A/cDr. To Partner's Capital A/c (Unrecorded liability taken over by the partner) |
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