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A retiring partner’s Loan Account has a balance of ₹2,10,000. An installment of ₹70,000 has been paid to the partner. If no interest is payable, what amount will remain in the Loan Account?

Answer and explanation

Correct answer: ₹1,40,000

When no interest is payable, the installment paid is simply deducted from the loan balance: ₹2,10,000 − ₹70,000 = ₹1,40,000. Therefore, option A is correct. ₹70,000 is the installment paid, not the remaining loan. Exam tip: Without interest, remaining loan = opening loan balance − amount paid.

Related tags

Partners-LoanRetirement-Of-PartnerLoan-AccountInstallmentBalance-CalculationPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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