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

Answer and explanation

Correct answer: Partner capital debit and realisation credit

When asset is taken over partner's capital is debited and realisation is credited. Remember the direction for asset taken over.

Related tags

DissolutionJournal EntryAsset Taken OverPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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