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If capital account has a credit balance but current account has a larger debit balance what may be the partners overall position?

Answer and explanation

Correct answer: Amount may be recoverable from partner

A larger debit current balance may exceed capital claim. In that case net position becomes against the partner.

Related tags

Capital AccountCurrent AccountNet DebitCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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