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Questions
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.
Options
True
False
MCQ
True or False
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Solution
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.
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