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If A's capital account has final credit balance ₹38000 then what is the correct closing entry?

Answer and explanation

Correct answer: Debit A's capital and credit bank

Credit capital balance is paid to the partner so capital is debited and bank is credited. Remember the direction of payment in exams.

Related tags

DissolutionJournal EntryFinal PaymentPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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