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If a partner takes over firm's liability then what is the combined effect in realisation and capital accounts?

Answer and explanation

Correct answer: Realisation debit and partner capital credit

Taking over liability closes it in realisation and gives credit to partner. Remember the liability taken over entry in exams.

Related tags

DissolutionJournal EntryLiability Taken OverPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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