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If ₹88000 is due to the retiring partner in the capital account and no immediate payment is made, for what amount will the loan account be created?

Answer and explanation

Correct answer: ₹88000

The whole amount due is unpaid so the full ₹88000 goes to the loan account. Exam tip: if no payment is made, the full due amount becomes loan.

Related tags

NumericalNo PaymentLoan AccountPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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