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If a partner has a final debit balance in his capital account and he pays that amount then what will be the final effect?

Answer and explanation

Correct answer: His capital account will be closed

A debit balance is recovered from the partner and after payment the capital account is closed. In exams treat debit capital as an amount receivable by the firm.

Related tags

DissolutionPartner AccountsDebit BalanceFinal SettlementPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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