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

Question

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

Team Careers360 · Accepted Answer

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.

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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: CreditedOption 3: Either 1 and 2Option 4: None of the above

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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