Question

State whether the following statements is true or false :

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

Options

• True

• False

Answer 1

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.