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
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.
