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If a partner takes the right to collect a firm's debtor then what happens in his capital account?

Answer and explanation

Correct answer: Debit

Right to collect debtors is like taking an asset so the partner's capital account is debited. Treat debtors taken over as asset taken over.

Related tags

DissolutionDebtors Taken OverPartner AccountsPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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