Question

Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm, Rohan’s loan to the firm will be:

Options

• Credited to Rohan’s Capital Account.

• Debited to Realisation Account.

• Credited to Realisation Account.

• Credited to Bank Account.

Answer 1

Credited to Bank Account.

Explanation:

At the time of dissolution of the partnership firm, partners’s loan to the firm will be credited to bank account.

For payment of loans due to partners

Partner’s Loan A/c    ...Dr.
      To Bank A/c