Question

Select the most appropriate alternative from those given below :

If any asset is taken over by partner from firm his Capital A/c will be____________.
a) credited
b) debited
c) added
d) none of these

Answer 1

If any asset is taken over by a partner from the firm, then his Capital A/c will be debited.

Explanation: When an asset is taken over by a partner, then the Realisation A/c is credited and the Concerned Partner’s Capital A/c is debited with the agreed price at which the asset is taken over by him.