Question : Harsh's loan of Rs. 6,000 was settled by paying Rs. 5,500. Choose the correct journal entry
Option 1: Harsh's loan account debited Rs 6000 and credited bank account Rs 6000
Option 2: Harsh's loan account debited Rs 5500 and credited bank account Rs 5500
Option 3: Harsh's loan account debited Rs 6000 , credited bank account Rs 5500 and credited realization account Rs 500
Option 4: None of the above

Question

Question : Harsh's loan of Rs. 6,000 was settled by paying Rs. 5,500. Choose the correct journal entry

Option 1: Harsh's loan account debited Rs 6000 and credited bank account Rs 6000

Option 2: Harsh's loan account debited Rs 5500 and credited bank account Rs 5500

Option 3: Harsh's loan account debited Rs 6000 , credited bank account Rs 5500 and credited realization account Rs 500

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: Harsh's loan account debited Rs 6000 , credited bank account Rs 5500 and credited realization account Rs 500

Solution : Answer = Harsh's loan account debited Rs 6000, credited bank account Rs 5500 and credited realization account Rs 500

Harsh's loan A/C Dr 6000
To Bank AIC 5500
To Realisation AIC 500.
Hence, the correct option is 3.

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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.