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The opening credit balance in a partner’s loan account is ₹2,40,000. If ₹80,000 of the principal is repaid, what will be the remaining principal loan?

Answer and explanation

Correct answer: ₹1,60,000

Repayment of principal reduces the outstanding loan balance. Therefore, remaining principal = ₹2,40,000 − ₹80,000 = ₹1,60,000. ₹80,000 is the amount repaid, not the balance remaining. For such questions, subtract the principal repaid from the opening loan balance, excluding any interest unless it is specifically mentioned.

Related tags

Partners-LoanPrincipal-RepaymentLoan-AccountPartnership-AccountsPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancy

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