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If A current account shows a debit balance of ten thousand rupees at year end what is the correct meaning?

Answer and explanation

Correct answer: Firm has to recover amount from A

A debit balance of current account shows amount recoverable from the partner. In exams treat it like an asset for the firm.

Related tags

Current AccountDebit BalanceMeaningCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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