Anita a partner whose loan account rs 20000 appear on balance sheet journalise the transaction during dissolution.?
Dear student
Partner's loan is not transferred to realisation account, it remain in it's account itself. At the time of settlement, we pay partner's loan after paying outside liabilities but before the payment of capital.
Entry :-
Anita's loan A/c. Dr. 20000
To bank/cash A/c. 20000
I hope it helps you!
Regards
Partner's loan is not transferred to realisation account, it remain in it's account itself. At the time of settlement, we pay partner's loan after paying outside liabilities but before the payment of capital.
Entry :-
Anita's loan A/c. Dr. 20000
To bank/cash A/c. 20000
I hope it helps you!
Regards