When realisation expenses are paid by the firm on behalf of a partner, which account will be debited: |
Realisation Account Partner's Capital Account Partner's Loan Account Revaluation Account |
Partner's Capital Account |
The correct answer is Option (2) → Partner's Capital Account When the firm pays realisation expenses on behalf of a partner, it means the firm bears an expense that should have been borne by that partner. Hence, the partner becomes liable to the firm, and his capital account is debited. |