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Partnership dissolution
Accountancy
Kindly explain why 4800(unrecorded asset)is posted on credit side of realization a/c Unrecorded asset is to be posted on debit side of realization a/c and If taken over by partner then effect is given on credit side of realization a/c Sir, in partner capital a/c at time of dissolution Does reserve fund posted there ? Kindly answer my query Thank you
Answers (5)
CA Suraj Lakhotia Admin
When you record an unrecorded asset, its a gain - hence credited to Realisation. Or think of a case when you sell an unrecorded asset - you will Dr Cash and Cr Realisation. Similarly when partner takes over, dr Partner and Cr Realisation
Sir,I understood but unrecorded asset should be first posted on debit side of realization a/c as all asset are first posted on debit side and then partner take over or bank is credited