Anushka Lalwani In: 1. Financial Accounting > Partnerships What are unrecorded assets? What are unrecorded assets? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent Radhika 2021-12-16T05:24:54+00:00Added an answer on December 16, 2021 at 5:24 am This answer was edited. Unrecorded Assets are the assets that are completely written off but still physically available in the company or assets that are not shown in the books of the company. Unrecorded assets are generally recorded or recognized at the event of admission, retirement, death of a partner when all the assets and liabilities are revalued or dissolution of the firm. Since Accounting Standards require firms to record all the assets and liabilities in their books, it is therefore mandatory to record such unrecorded assets. There can be two cases for treatment of such unrecorded assets: Unrecorded Asset entered into the business and recorded in books Unrecorded Asset A/c (Dr.) Amt To Revaluation A/c Amt The unrecorded asset is now debited since it has to be recorded in the books now and Revaluation Account is credited since it is again for the business which will eventually be transferred to Partners’ Capital Account. Unrecorded Asset taken over by a partner and paid cash Cash A/c (Dr.) Amt To Partners’ Capital A/c Amt If a partner decides to take over an unrecorded asset then his account is credited with that amount and since cash paid by the partner comes into business Cash Account is debited. Unrecorded Asset discovered during Dissolution Cash/ A/c (Dr) Amt To Realization A/c Amt When an unrecorded asset is discovered during the dissolution of the firm, such an asset is sold directly to the outsider and as a result, cash A/c is debited since the cash is entering the business. The entry is made through the Revaluation A/c and it is hence credited. Example: At the time of revaluation, firms find a typewriter that has not been recorded in the books and is valued at Rs 10,000. The journal entry to record that typewriter will be: Typewriter A/c (Dr.) 10,000 To Revaluation A/c 10,000 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What are some examples of deferred revenue expenses? Are brands intangible assets? What comes in debit side of Realisation account? What is recorded in the Realisation account? What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance?