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If the value of asset taken by a partner is more than his credit capital balance then what may be the result of capital account?

Answer and explanation

Correct answer: Debit balance

Taking asset reduces capital and if it exceeds capital it may create debit balance. Find final balance to decide payment or recovery.

Related tags

DissolutionAsset More Than CapitalDebit BalancePartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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