Question

State whether the following statement is true or false:

Amount due to a retiring partner if not paid, appears as his loan in the books of the firm.

State Whether the following Statement is True or False:

The amount due to retiring partner, if not paid in cash, is transferred to his Loan Account.

विकल्प

• True

• False

Answer 1

The statement is true.

Explanation: 

Amount due to a retiring partner, if not paid, appears as his loan in the books of the firm, as it represents a liability that needs to be paid. Also, interest @ 6% p.a. is allowed till the date such amount remains outstanding.