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In which situation is a partner's capital account not directly affected by realisation account?

Answer and explanation

Correct answer: When firm directly pays outside liability

Direct payment of outside liability by firm first goes to realisation account and does not directly affect capital. Separate direct and indirect effects in exams.

Related tags

DissolutionOutside LiabilityDirect EffectPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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