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What is the correct sequence for preparing retiring partner loan account?

Answer and explanation

Correct answer: First find final capital amount due then transfer to loan then record interest and payments

Loan account is based on final amount due. Therefore record interest and payments only after capital settlement.

Related tags

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

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