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If a partner has to pay final debit balance and pays it fully then what is the effect on bank account and capital account?

Answer and explanation

Correct answer: Bank debit and capital credit

The firm receives cash so bank is debited and partner's capital is credited. Write recovery entry correctly in exams.

Related tags

DissolutionRecovery EntryDebit BalancePartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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