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Question : Choose the correct Journal entry with respect to the loan by Amit (Partner) for the following cases at the time of the firm's dissolution:
Question:
The loan by Amit (Partner) is Rs. 50,000, and the Balance in his Capital Account (debit) is Rs. 40,000. The Bank account will be debited/credited by Rs___________.

Option 1: Debited by Rs 10,000

Option 2: Credited by Rs 50,000

Option 3: Debited by Rs 40,000

Option 4: Credited by Rs 10,000


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: Credited by Rs 10,000


Solution : Answer = Credited by Rs 10,000
If Partner's Capital (deBit Balance) 40000

Partner's Loan AIC Dr 50,000
To Partner's Capital AIC 40000
To Bank AIC 10,000.
Hence, the correct option is 4.

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