One of the partner took-over furniture a

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Dissolution of Partnership Firm

Question:

One of the partner took-over furniture at the time of dissolution of the firm, which account will be debited:

Options:

Realisation Account

Partner's Current Account

Partner's Loan Account

Partner's Capital Account

Correct Answer:

Partner's Capital Account

Explanation:

The correct answer is option 4- Partner's Capital Account.

Partner's Capital Account will be debited if the partner took-over furniture at the time of dissolution of the firm.

The journal entry for an asset taken over by a partner is as follows-

Partner’s Capital A/c Dr.
To Realisation A/c