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A partner contributed a personal car to the firm as capital with agreed value two lakh rupees. The firm accepted outstanding loan of fifty thousand rupees on it. What amount will be credited to capital account?

Answer and explanation

Correct answer: One lakh fifty thousand rupees

Net contribution is agreed asset value less loan accepted. Two lakh minus fifty thousand equals one lakh fifty thousand.

Related tags

Asset ContributionLoan AssumedCapital CreditCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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