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Why is the partner treated like a lender after retirement?

Answer and explanation

Correct answer: Because his amount due remains in the firm as loan

After retirement he no longer shares profits and losses. The unpaid amount remains as loan liability of the firm.

Related tags

Partners-LoanLenderRetirementPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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