Pass the necessary journal entry for treatment of Partner’s loan appearing on the assets side of the Balance Sheet in case of dissolution of a partnership firm. (CBSE 2019)

SOLUTION

Journal

DateParticularsL.FAmount (Dr.)Amount (Cr.)
 Cash / Bank A/c Dr.
   To Partner’s Loan A/c / Loans to Partner A/c
(Loan to Partner by the firm received)
  

Note: Partner’s Loan appearing on the assets side of the Balance Sheet implies Loan given to the partner by the firm.



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