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
Option 1: Debited
Option 2: Credited
Option 3: Either 1 and 2
Option 4: None of the above
Correct Answer: Debited
Solution : Answer = Debited
When a partner passes away, any advance or loan given by the partner to the firm, along with accrued interest, will be debited to his capital account. This adjustment ensures that the partner's capital account accurately reflects his investment and liabilities in the partnership at the time of his death. Hence, the correct option is 1.
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
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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