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If firm returned capital of Rs 50000 to a partner but treated it as drawings and debited current account which account needs correction?

Answer and explanation

Correct answer: Both capital account and current account

Return of capital reduces capital account while normal drawings affect current account. The error misclassifies both partner accounts.

Related tags

Capital WithdrawalDrawingsCurrent AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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