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If a partner's capital account shows credit balance but he has also taken a separate loan from the firm then what is generally done first?

Answer and explanation

Correct answer: Loan is separately recovered or adjusted

Loan to partner is receivable by the firm. Show the separate loan clearly or adjust it as instructed.

Related tags

DissolutionLoan To PartnerSettlementPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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