Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

When a liability is taken over by a partner at the time of dissolution of partnership firm, his capital account will be:

Options:

Debited

Credited

No entry passed

None of these

Correct Answer:

Credited

Explanation:

Claim of capital account is increased with the value of that liability. So, for a liability which a partner takes responsibility to discharge the journal entry will be-
Realisation A/c Dr.
   To Partner’s Capital A/c