On firm's dissolution, a partner undertook firm's creditors at ₹17,000. In this case the account will be credited:
Answer & explanation
Correct answer: option 3
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:
Realisation A/c Dr.
To Partner’s Capital A/c
As partner capital account increased by this amount because he will pay liability. So, partners capital account is credited with the amount of liability.