Question : C's Capital Account has a credit balance of Rs.2,00,000; C's Loan Account is showing a debit balance of Rs.40,000. Bank Balance is Rs.3,00,000. Show the treatment of C's Loan Account.
Option 1: Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000
Option 2: Debited C's capital Rs 1,60,000 and credited C's loan Rs 1,60,000
Option 3: Credited C's capital Rs 40,000 and debited C's loan Rs 40,000
Option 4: None of the above
Correct Answer: Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000
Solution : Answer = Debited C's capital Rs 40,000 and credited C's Loan account Rs 40,000 C's Loan [Dr balance] mean the firm had given the loan to Partner. At the time of dissolution of the Partnership firm, the Partner's Loan will transferred to Partner's Capital account. Partner's Capital A/C Dr. To Partner's Loan. A/c. Hence, the correct option is 1.
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.
Question : Harsh's loan of Rs. 6,000 was settled by paying Rs. 5,500. Choose the correct journal entry
Question : Realization expenses of Rs. 5,000 were to be borne by Pavit, a partner. However, it was paid by Hitesh, another partner. It was to be recorded in the books. The entry will be
Question : Credit side of revaluation account Rs 60,000 and debit side of revaluation account Rs 40,000 . Entry for the balance will be .
Question : There are two partners A and B in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will A and B receive or be paid?
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