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If debit balance of current account is to be adjusted into capital account what entry will be made?

Answer and explanation

Correct answer: Capital account debit and current account credit

To close debit current balance current account is credited. To reduce partners capital claim capital account is debited.

Related tags

Current AccountSet OffCapital AdjustmentCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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