One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Partner’s Capital Account
The furniture was already transferred to the debit of the realisation account along with the other assets. When a partner takes it over, he receives an asset of the firm, so his capital account is debited and the realisation account is credited, just as if he had bought it for cash.
Partner’s Capital A/c Dr.
To Realisation A/c
Why the other options are incorrect
Option (1) Realisation Account — Incorrect. The realisation account is credited here, as it is for any asset sold.
Option (2) Partner’s Current Account — Incorrect. On dissolution the current accounts are closed into the capital accounts, so the entry is made in the capital account.
Option (3) Partner’s Loan Account — Incorrect. A partner’s loan is a liability of the firm settled separately; taking over an asset does not reduce it.
NCERT (2026-27 edition):
|
