On firm's dissolution, a partner undertook firm's creditors at ₹17,000. In this case the account will be credited: |
Realisation Account Cash account Partner's Capital Account Profit & Loss Account |
Partner's Capital Account |
The correct answer is option 3- Partner's Capital Account. For a liability which a partner takes responsibility to discharge, the following journal entry is passed: As partner capital account increased by this amount because he will pay liability. So, partners capital account is credited with the amount of liability. |