Raman and Naman were in partnership sharing profit and losses as 3: 2. Their partnership firm was dissolved on 31 March 2022. On the date of dissolution. Naman's loan was ₹20,000. Naman agreed to take stock (already transferred to Realisation A/c) of ₹15,000 at ₹18,000 and balance in cash for the settlement of the loan. Journal Entry for the above transaction is:

Naman's Loan A/c Dr   ₹20000
   To Realisation A/c                  ₹18000
   To cash A/c                           ₹2000
(Settlement of loan)

For an asset taken over by a partner-
   Partner’s Capital A/c Dr.  18000
      To Realisation A/c                      18000
 (Amount at which he has taken asset)

Balance is taken in cash-
  Partner’s Capital A/c Dr. 2000
      To Cash A/c                      2000
* Here loan account is settled so loan account is debited.