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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. 60,000. The Bank account will be ___________and with Rs____________.

Option 1: Credited by Rs 10,000

Option 2: Credited By Rs 50,000

Option 3: Debited By Rs 10,000

Option 4: Debited By Rs 50,000


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Debited By Rs 10,000


Solution : Answer = Debited By Rs 10,000

If Partner's Capital (Debit Balance) Rs 60000

Partner's Loan A/C Dr 50,000
Bank A/C Dr                10,000
To Partner's capital A/C           60,000
Hence, the correct option is 3.

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