If any loan is provided by a partner to

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

If any loan is provided by a partner to partnership firm, where the balance of such loan is transferred?

Options:

Assets side

Partners current account

Liability side

Partners' capital account

Correct Answer:

Liability side

Explanation:

Partners loan is also like any other loan for the firm, so it is liability for business and shown in liability side of balance sheet.