Question

Amit (Partner) has debit balance of ₹ 1,00,000 in his Capital Account and has credit balance of ₹ 2,00,000 in his Loan Account. On dissolution ______.

पर्याय

• ₹ 1,00,000 will be transferred to his Capital Account and balance will be paid.

• ₹ 2,00,000 will be transferred to his Capital A/c.

• ₹ 2,00,000 will be paid to Amit.

• ₹ 1,00,000 will be transferred to his Loan A/c from his Capital A/c.

Answer 1

Amit (Partner) has debit balance of ₹ 1,00,000 in his Capital Account and has credit balance of ₹ 2,00,000 in his Loan Account. On dissolution ₹ 1,00,000 will be transferred to his Capital Account and balance will be paid.

Explanation:

On dissolution, Amit owes the firm ₹ 1,00,000 (debit capital balance), while the firm owes Amit ₹ 2,00,000 (credit loan balance). Under the Right of Set-off, the firm will not pay the full loan amount while his capital is in deficit. Instead, the firm will transfer ₹ 1,00,000 from his Loan Account to clear his negative Capital Account balance, and the remaining final balance of ₹ 1,00,000 will be paid out to Amit.