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If the amount due to retiring partner is fully paid immediately through bank instead of transferring to loan account when will loan account be needed?

Answer and explanation

Correct answer: Loan account will not be needed

When the full amount due is paid immediately no unpaid liability remains. Therefore a separate loan account is not required.

Related tags

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

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