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A machine was taken over by a partner for ₹45000 and he also accepted related repair liability of ₹5000. What is the credit amount for machine takeover in Realisation Account?

Answer and explanation

Correct answer: ₹45000

Asset takeover amount is credited separately at ₹45000. Acceptance of liability is treated separately as settlement of liability.

Related tags

AccountancyAsset TakeoverLiability AssumptionRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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