Accountancy Part AReconstitution of Partnership Firm: Retirement and Death

If nothing is mentioned, the amount due to retiring partner is transf…

If nothing is mentioned, the amount due to retiring partner is transferred to......

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Retiring partner loan A/c

Where nothing is said about immediate payment, the amount due is taken as left with the firm, so it becomes a loan to the firm.

NCERT (2026-27 edition):
Disposal of Amount Due to Retiring Partner – “… In case the firm is not in a position to make the payment immediately, the amount due is transferred to the retiring Partner’s Loan Account, and as and when the amount is paid it is debited to his account.”