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A partner paid firm expense (₹22000) from personal account. Later the firm reimbursed him in cash. What is the final effect on the partner's capital account?

Answer and explanation

Correct answer: No final effect

First the partner is credited and on reimbursement debited. Both effects cancel, leaving no final effect on capital.

Related tags

PartnershipAdjustmentsReimbursementPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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