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
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.
