If eight thousand rupees remuneration is payable to a partner for dissolution work, what happens in capital account?

Correct answer: Credit ₹8,000

A partner who performs dissolution work is entitled to remuneration when the partnership agreement or the stated arrangement provides for it. This amount is a gain or benefit for that partner, not a loss charged to the partner. Therefore, it increases the amount due to the partner at the time of settlement.

The payable remuneration is ₹8,000, so the partner’s capital account receives a credit of ₹8,000. This is why option A follows. A credit increases the partner’s claim against the firm, whereas a debit would reduce it. The amount must not be changed to ₹4,000, and “no entry” is incorrect because the remuneration is specifically stated as payable and must be recorded.