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The loan account of a retiring partner has an outstanding balance of ₹1,50,000. If the first instalment of ₹60,000 is paid and no interest is payable, what amount will remain in the loan account?

Answer and explanation

Correct answer: ₹90,000

Since no interest is payable, the remaining loan is calculated as: outstanding loan − instalment paid = ₹1,50,000 − ₹60,000 = ₹90,000. Therefore, option A is correct. In such questions, when interest is absent, deduct only the amount paid from the outstanding loan; do not add the instalment or deduct it more than once.

Related tags

Partners-LoanRetirement-Of-PartnerInstalmentLoan-AccountNumerical-AccountingPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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