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Question : On dissolution of a firm, a partner took over Rs.34,000 investments for Rs.28,000. Which one of the following accounts will be debited/credited with how much amount?

Option 1: Partner's Capital Account Debit with 28,000

Option 2: Partner's Capital Account Credit with 34,000

Option 3: Realisation Account Credit with 34,000

Option 4: Realisation Account debited with 34,000


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Partner's Capital Account Debit with 28,000


Solution : Answer = Partner's Capital Account Debit with 28,000

When an investment valued at Rs 34,000 is taken over by any partner by Rs 28,000. Partner capital account will be debited by Rs 28,000 and credited to the realisation account by Rs 28,000.

Partner's capital a/c......Dr 28,000
To Realisation a/c 28,000.
Hence, the correct option is 1.

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