Question

State the accounting treatment for:
Unrecorded assets

Answer 1

Accounting 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 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)