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If the deed does not allow debit balance in partners capital accounts what should be done in case of excess drawings?

Answer and explanation

Correct answer: Recover as per deed or adjust in current account

Excess drawings may create a debit capital balance so deed based correction is needed. Recovery or current account adjustment may be used.

Related tags

Excess DrawingsDebit CapitalDeed RestrictionPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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