Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

Anu, Bina and Charan are partners. The firm had given a loan of Rs20,000 to Bina. On the event of dissolution, the loan will be settled by............

Options:

Transferring it to debit side of Realization Account

Transferring it to credit side of Realization Account

Transferring it to debit side of Bina's Capital Account

None of the above

Correct Answer:

None of the above

Explanation:

For payment of loans due to partners :
Partner’s Loan A/c Dr.
To Bank A/c