Question

Select the most appropriate alternative from the given below and rewrite the statement.
If any asset is taken over by a partner from the firm, his capital account will be ______

Options

• credited

• debited

• added

• none of these

Answer 1

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

Explanation:

If a partner purchases an asset from the firm, his Capital Account will be debited. When a partner acquires an asset, 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 acquired.