Question 21 of 53beginner🧠 RememberFill in the Blanks1 mark

If a partner takes over an asset, such (Partner’s Capital Account) is _____ (debited/credited).

Correct Answer

debited

Exercise: Test your Understanding – III | Q: 5 | (Page 17)
For More Understanding

Explanation

The provided context includes a 'Test your Understanding – III' section where Question 5 asks the exact same question. Additionally, the table for 'Partner’s Capital Accounts' shows entries like 'Realisation (investment)' and 'Realisation (debtors)' on the Debit side, confirming that when a partner takes over an asset, their capital account is debited.

Solution Steps

  1. Step 1: Refer to the 'Test your Understanding – III' section in the provided text, specifically Question 5.

  2. Step 2: Observe the 'Partner’s Capital Accounts' table where assets taken over (Investment, Debtors) are listed on the Debit side.

  3. Step 3: Conclude that the Partner's Capital Account is debited.

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