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
Answer (1)
17th Jan, 2024
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.
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