Question:
On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:
On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:
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Partner’s loan is treated as a liability, not capital.
Updated On: Jul 8, 2025
- Realisation A/c
- Mohan’s Capital A/c
- Mohan’s Current A/c
- Bank A/c
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The Correct Option is D
Solution and Explanation
Loan is a liability and is paid in cash.
Entry: Mohan’s Loan A/c Dr. To Bank A/c
Entry: Mohan’s Loan A/c Dr. To Bank A/c
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