Give necessary journal entries for settlement of partner's loan at the time of dissolution of partnership firm under the following cases:

Loan from partner A ₹25000 and his capital account shows a debit balance of ₹ 26000.

A's loan A/c  Dr.    ₹25000 Bank A/c     Dr.      ₹1000        To A's Capital A/c       ₹26000 Bank A/c  Dr          ₹25000     To A's loan A/c              ₹25000 A's loan A/c      ₹25000    To A's Capital A/c              ₹25000 None of these

A's loan A/c  Dr.    ₹25000 Bank A/c     Dr.      ₹1000        To A's Capital A/c       ₹26000

1000 will be brought by partner in bank account of firm.