Question : Advance or loan is taken by the Deceased partner from the firm, if any, along with interest thereon. Will be ------ to partner capital account
Option 1: Debited
Option 2: Credited
Option 3: Either A and B
Option 4: None of the above
Correct Answer: Credited
Solution : Answer = Credited
The advance or loan taken by a deceased partner from the firm, along with any accrued interest, will be credited to the partner's capital account. This reflects the repayment of the partner's liability to the firm, thereby reducing the partner's equity stake in the business upon their demise. Hence, the correct option is 2.
Question : At the time of death of a partner, Advance or Loan is given by him to the firm, if any, along with interest thereon. Will be ------- to his capital account
Question : At the time of the death of a partner deceased partner's Drawings and Interest on drawings will be ----------- to his capital account.
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