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easyMCQCUET Accountancy 2022 20 July Shift 12026Accountancy
1 mark

At the time of retirement of a Partner if retiring Partner's whole amount is treated as loan, then the total amount is Debited in:

  1. A
    Retiring Partner's loan A/C
  2. B
    Retiring Partner's capital A/C
  3. C
    Retiring Partner's current A/C
  4. D
    Bank A/C

Solution & Step-by-step Explanation

When a retiring partner's dues are not paid immediately but transferred to their loan account, the journal entry requires debiting the Retiring Partner's Capital Account (to close it) and crediting the Retiring Partner's Loan Account.

Practice this question

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At the time of retirement of a Partner if retiring Partner's whole amount is treated as loan, then the total amount is Debited in:
A
Retiring Partner's loan A/C
B
Retiring Partner's capital A/C
C
Retiring Partner's current A/C
D
Bank A/C

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PartnershipRetirement/Death

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