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Question : In the Settlement Of Varun's ( partner) loan Of Rs 50,00 to the firm, a computer net appearing in the books is taken over by him at an agreed value of Rs 30,000.
The realization account will be

Option 1: Debited by Rs 30,000

Option 2: Credited by Rs 30,000

Option 3: Debited by Rs 50,000

Option 4: Credited by Rs 50,000


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Credited by Rs 50,000


Solution : Answer = Credited by Rs 5000
When the partner loan is settled,
Assets which have been already transferred to the realisation account, then the entry will be

Partner's loan a/c....Dr 50,000
To Realisation a/c 50,000.
Hence, the correct option is 4.

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