Question

If any asset is taken over by partner from the firm ______ account will be debited.

Options

• Capital

• Revaluation

•  Asset

• Profit and Loss Adjustment

• Balance Sheet

Answer 1

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

Explanation: 

If any asset is taken over by a partner from the firm, then his/her Capital Account is debited. The capital account of a partner has a credit balance, which, on taking over an asset, gets reduced to the extent of the value of the asset so taken over.