WHEN A LIABILITY IS TO BE DISCHARGED BY A PARTNER WHY IS HIS CAPITAL ACCOUNT CREDITED?
Dear Student, when any partner discharge the liability of the firm then Realisation A/c is debited because liability of the firm is decreasing ( as per the rule of Nominal Account i.e. 'Debit all the expenses and losses') and Partner's Capital Account is credited as per the rule of Personal Account i.e. 'Credit the Giver'.
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