account will be debited when interest on capital is paid on capital of deceased partner.

Bank

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Partner's capital

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Interest on Capital

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Realisation

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Solution

The correct option is C Interest on Capital
Interest on capital account will be debited and partner's capital account will be credited when interest on capital is paid on capital of deceased partner.

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Similar questions

In case of interest on capital charged on deceased partner's capital account, what will be the journal entry?

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