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.