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Amount due to a retiring partner is ₹210000. The firm settled ₹50000 by cash and ₹40000 by giving a vehicle, and the rest remained as loan. What amount will go to loan account?

Answer and explanation

Correct answer: ₹120000

Total immediate settlement is ₹90000, so unpaid loan is ₹120000. Exam tip: deduct both cash and asset settlement.

Related tags

Asset SettlementLoan AmountNumericalPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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