Question:
On dissolution of a firm, there was an unrecorded asset of \(₹15,000\) which was taken over by a partner at \(₹13,000\). Partner’s capital account will be debited by :
On dissolution of a firm, there was an unrecorded asset of \(₹15,000\) which was taken over by a partner at \(₹13,000\). Partner’s capital account will be debited by :
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On dissolution, partners’ capital accounts are debited with the agreed takeover price of assets, not their original value.
Updated On: Jul 8, 2025
- \(₹15,000\)
- \(₹28,000\)
- \(₹2,000\)
- \(₹13,000\)
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The Correct Option is D
Solution and Explanation
An unrecorded asset is one that doesn’t appear in the firm’s books but has value. When a partner takes it over on dissolution, his capital account is debited with the amount he pays or agrees to pay for it—not the book value.
Here, the asset was valued at \(₹15,000\) but taken over for \(₹13,000\).
Hence, partner’s capital account is debited by \(₹13,000\).
Here, the asset was valued at \(₹15,000\) but taken over for \(₹13,000\).
Hence, partner’s capital account is debited by \(₹13,000\).
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