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

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

SOLUTION

When an asset is taken over by a partner, his Capital Account is debited because the claim of Capital Account is reduced by the value of the asset taken over.







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Previous PostOn dissolution, what entry is passed if a partner takes over an asset of the firm Valued Rs. 10,000 at Rs. 6,000?
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