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If partial amount is received from an insolvent partner then what is the effect on his capital account?

Answer and explanation

Correct answer: His capital account is credited

Amount received from an insolvent partner reduces his debit balance so his capital account is credited. Record bank debit and capital credit in exams.

Related tags

DissolutionInsolvent PartnerPartial RecoveryPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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