Question

At the time of Dissolution of a partnership firm, if a partner’s loan to the firm is discharged by giving an unrecorded asset, which of the following entries will be passed?

Options

• Partner’s Loan A/c     ...Dr.
        To Unrecorded asset A/c

• Unrecorded asset A/c     ...Dr.
        To Revaluation A/c

• Partner’s Loan A/c     ...Dr.
      To Realisation A/c

• Unrecorded asset A/c     ...Dr.
       To Revaluation A/c

Answer 1

Partner’s Loan A/c     ...Dr.
    To Realisation A/c