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A contributed building as capital and firm also accepted outstanding tax on building. What will be deducted while finding net credit to capital account?

Answer and explanation

Correct answer: Outstanding tax on building accepted

Accepted liability is deducted from asset value to find net capital contribution. Outstanding tax is also an accepted liability.

Related tags

Asset ContributionOutstanding LiabilityNet CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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