why partners loan a/c is not transferred in realisation a/c

Hi Aditi

Realisation Account is prepared to realise assets and discharge the external liabilities of the business. As the name suggests, 'Partner's Loan Account belongs to the partner and is an internal liability, therefore, it will be transferred to Partner's Loan Account (if partner has given loan to the business) or Partner's Capital Account (if firm has provided loan to the partner).
 

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