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What is the correct way to find balance of loan account?

Answer and explanation

Correct answer: Add credit dues and interest then subtract debit payments

In loan account credit side increases amount payable and debit side reduces it through payments. The difference shows remaining liability.

Related tags

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

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