If any asset is taken over by partner from firm his capital A/c will be ______.

credited

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debited

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added

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none of these

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Solution

The correct option is B debited
B. debited
The reason for debiting the partner's capital is that it will be assumed that partner has been paid a part of his capital. This will reduce the capital of partner as well as the asset of the firm. The journal entry will be:
Partner's Capital A/c............. Dr.
To Asset A/c
(Being asset taken over by the partner)

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