On firm's dissolution, when a partner vo

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

On firm's dissolution, when a partner voluntarily gives his personal asset to firm's creditor as payment, which account will be credited?

Options:

Realisation Account

Cash account

Partner's Capital Account

Profit & Loss Account

Correct Answer:

Partner's Capital Account

Explanation:

Partner's Capital a/c will be credited in such a case as giving his asset to the firm increase his contribution in the firm.