What will be the journal entry at the ti

CUET Preparation Today

Start Free Mocks

Home Questions QRR5748GMU

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

What will be the journal entry at the time of dissolution of firm for the receipt of the amount of loan that the partnership firm gave to partner ?

Options:

Partner's capital A/c Dr.
To Loan to partners A/c
(Settlement of loan)

Loan to partners Dr.
To Bank A/c
(Settlement of loan)

Loan to partners Dr.
To Partner's capital A/c
(Settlement of loan)

Bank A/c Dr.
To loan to partners A/c
(Settlement of loan)

Correct Answer:

Bank A/c Dr.
To loan to partners A/c
(Settlement of loan)

Explanation:

For settlement of loan by a firm to a partner:
Bank A/c Dr.
To loan to partners A/c