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If debit balance of current account is shown on liabilities side of balance sheet what error occurs?

Answer and explanation

Correct answer: Recoverable amount is shown as liability

Debit balance of current account is recoverable from partner. It should be shown on assets side or adjusted properly.

Related tags

Current AccountPresentation ErrorBalance SheetCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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