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When a liability is to be discharged by a partner, why is his Capital Account credited?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

When a liability is to be discharged by a partner, his Capital Account is credited because the claim of the partner against the firm is increased by the amount of liability assumed.







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Previous PostWhen an asset is taken over by a partner, why is his Capital Account debited?
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