CUET Preparation Today
How is the balance of a retiring partner’s loan account shown in the Balance Sheet until the final instalment is paid? |
As an asset on the asset side As capital on the liabilities side As a liability on the liabilities side It is not shown in the Balance Sheet |
As a liability on the liabilities side |
The correct answer is option 3- As a liability on the liabilities side. The balance of the retiring partner’s loan account is shown on the liabilities side of the Balance Sheet till the last instalment is paid to him/her. |
