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If a capital account has debit balance how is it more appropriately shown in the balance sheet?

Answer and explanation

Correct answer: On assets side as recoverable from partner

Debit capital balance shows amount due from partner to firm. Therefore it is shown as recoverable amount.

Related tags

Debit CapitalBalance SheetRecoverableCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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