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If As capital account has a debit balance what does it possibly show?

Answer and explanation

Correct answer: A has withdrawn more than his claim

Debit capital balance is an unusual position and amount may be due from partner. Treat it as overdrawn capital.

Related tags

Debit CapitalOverdrawn CapitalCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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