Question

Journal entry for recording unrecorded computers at the time of admission of a partner is:

• A. Old partner’s capital a/c Dr
  To Computers a/c
• B. Computers a/c Dr
  To Old partner’s capital a/c
• C. Computers a/c Dr
  To Revaluation a/c
• D. Revaluation a/c Dr
  To Computers a/c

Answer 1

Answer: (C)

Computers a/c Dr
To Revaluation a/c

Answer 2

When a partner is admitted into a partnership, any unrecorded assets such as computers need to be recognized in the books. The appropriate journal entry to record unrecorded com puters is to debit the Computers account (to recognize the asset) and credit the Revaluation account (to account for the increase in asset value). This reflects that the computers are being brought into the partnership’s books as part of the revaluation of assets during the admission of a new partner.