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. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles 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? Next PostWhen a liability is to be discharged by a partner, why is his Capital Account credited? You Might Also Like Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs. 1,20,000, Rs. 90,000 and Rs. 60,000 respectively. For the year ended 31st March, 2019, interest was credited to them @ 6% instead of 5%. Give adjustment Journal entry. July 21, 2022 Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016) October 7, 2022 Can ‘securities premium reserve’ be distributed as dividend? September 28, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs. 1,20,000, Rs. 90,000 and Rs. 60,000 respectively. For the year ended 31st March, 2019, interest was credited to them @ 6% instead of 5%. Give adjustment Journal entry. July 21, 2022
Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016) October 7, 2022