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If final credit balance is paid to a partner then what is the effect on bank account and capital account?

Answer and explanation

Correct answer: Capital debit and bank credit

When payment is made to partner capital is debited and bank is credited. Close payable capital this way in exams.

Related tags

DissolutionPayment EntryCredit BalancePartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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