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Question : Choose the correct Journal entry with respect to loan by Amit (Partner) for the following cases at the time of the firm's dissolution:
The loan by Amit (Partner) is Rs. 50,000 and the Balance in his Capital Account
(credit) is Rs. 25,000.

Option 1: debited partner's loan account and credited partner's capital account with Rs 25,000

Option 2: debited realization account and credited Banka account Rs 25,000

Option 3: Debited partner's loan account and credited bank account with Rs 25,000

Option 4: None of the above


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Debited partner's loan account and credited bank account with Rs 25,000


Solution : Answer = Debited partner's loan account and credited bank account with Rs 25000
When Partner's Loans are Paid

Partner's Loan AIC Dr. 25000.
To. Bank. Alc 25000
Hence, the correct option is 3.

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