at the time of dissolution of partnership firm why is the payment of partner's loan not done through capital account

Dear Student,

At the time of the dissolution of the partnership firm, the payment of the partner's loan is not done through the partner's capital account because the partner's loan is treated as a loan from the third party to the firm not to any personal partner. And if the loan is for the firm then it will not be charged from the partner's capital account.

Thanks and Regards