Realisation of Assets and Liabilities - Comprehensive
When a partne...
Question
When a partner discharges the liability of the firm, account is credited.
A
bank
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B
liability
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C
partner's capital
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D
revaluation
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Solution
The correct option is C partner's capital When a partner discharges the liability of the firm, the realisation account is debited because the liability of the firm is decreasing and partner's capital account is credited.