Question

Select the most appropriate answer from the alternative given below and rewrite the sentence.

If any asset is taken over by partner from the firm _________________ account will be debited.
a) capital
b) revaluation
c) asset
d) Profit and Loss Adjustment

Answer 1

If any asset is taken over by partner from the firm capital account will be debited.

Explanation: If any asset is taken over by a partner from the firm, then his/her Capital Account is debited. The capital account of a partner has credit balance, which, on taking over of an asset, gets reduced to the extent of the value of the asset so taken over.