Question 20 of 53beginner🧠 RememberFill in the Blanks1 mark

If a liability is assumed by a partner, such Partner’s Capital Account is _____ (debited/credited).

Correct Answer

credited

Exercise: Test your Understanding – III | Q: 4 | (Page 17)
For More Understanding

Explanation

According to the provided context, specifically under point 6, the journal entry for a liability which a partner takes responsibility to discharge is 'Realisation A/c Dr. To Partner's Capital A/c'. In this entry, the Partner's Capital Account is placed on the credit side, indicating that it is credited.