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If a partner's capital account is credit and his loan account is also credit then in what order are they paid?

Answer and explanation

Correct answer: Loan first then capital

In payment order partner's loan is paid before return of capital. Keep partner loan and capital separate in exams.

Related tags

DissolutionPayment OrderPartner LoanPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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