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When a partner takes over an unrecorded asset during dissolution, the following is credited:
  • a)
    Capital Account of the Partner
  • b)
    Cash Account
  • c)
    Asset Account
  • d)
    Realization Account
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
When a partner takes over an unrecorded asset during dissolution, the ...
At the time of dissolution, if a partner takes over an unrecorded asset, the Realization Account is credited with the value of the asset. The Realization Account is a nominal account used to close the firm's books, record the sale of assets, payment of liabilities, and transfer of unrecorded assets. The partner’s capital account is then adjusted accordingly.
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When a partner takes over an unrecorded asset during dissolution, the following is credited:a)Capital Account of the Partnerb)Cash Accountc)Asset Accountd)Realization AccountCorrect answer is option 'D'. Can you explain this answer?
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