— Kishore V, SME and ACW at Edumarz
I) In the case of unrecorded assets
An unrecorded asset is one whose value has been wiped off from the books of accounts but which is still useable. It’s written as
1.If it’s a cash sale
Particulars | L.F | Debit | Credit |
Cash A/c Dr To Realisation A/c (An unrecorded asset was sold for money.) |
- If either partner takes over
Particulars | L.F | Debit | Credit |
Partner’s Capital A/c Dr To Realisation A/c (An unrecorded asset is taken up by a partner.) |
ii) In the case of unreported obligations
Unrecorded liabilities are obligations that are not recorded in a company’s records.
- When an unrecorded liability is paid off, it might be reported as
Particulars | L.F | Debit | Credit |
Realisation A/c Dr To Cash A/c (The price of an unrecorded liability was paid in cash.) |
2.When done with a partner
Particulars | L.F | Debit | Credit |
Realisation A/c Dr To Partner’s Capital A/c (Unrecorded liability is assumed by the partner.) |