State the accounting treatment for:
i. Unrecorded assets ii. Unrecorded liabilities

Explanation

(i) For Unrecorded Assets
An unrecorded plus is such AN plus whose worth is written faraway from books of accounts, however it's in usable kind. it's shown as:

1. If sold-out by money Cash
A/c Dr.
To Realisation A/c
(Unrecorded plus sold-out off for cash)

2. If seized by any partner
Partner’s Capital A/c Dr.
To Realisation A/c
(Partner takes over unrecorded asset)
ii) For unrecorded liabilities
Liabilities that aren't recorded in books of firm square measure referred to as unrecorded liabilities. It will be shown in records as

1. once unrecorded liability is paid off
Realisation A/c Dr.
To money A/c
(Paid in money the worth of unrecorded liability)

2. once undertaken by a partner
Realisation A/c Dr.
To Partner’s Capital A/c
(Liability that's unrecorded is seized by partner)