Question

The capital account of a retiring partner always shows a debit balance. (State True or False)

Answer 1

Hey mate ✌️✌️


TRUE,The capital account of a retiring partner always shows a debit balance.


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Answer 2

The statement that a capital account of the retiring partner always shows a debit balance is False

• The capital account of a retiring partner always shows the credit balance.
• A retiring partner's capital account still shows the credit balance. This is because the amount due to him in the form of equity of revaluation fund earnings, share of goodwill, accrued income and savings, etc., is always more than the sum that eliminates his claim such as the share of deferred revenue, drawings, etc.