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If a partner's capital account shows a debit balance, it usually means the partner has
Acontributed extra capital
Boverdrawn / owes the firm
Cguaranteed profit
Dearned interest
Answer & Solution
Correct answer: B. overdrawn / owes the firm
A debit balance in a capital/current account means the partner has withdrawn more than their entitlement and owes the firm.
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