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In which situation can the opening amount of loan account be more than the final capital balance?

Answer and explanation

Correct answer: Generally no, opening loan is not more than final capital due unless another payable is separately created

Loan account is generally created from final unpaid amount due. Exam tip: add extra payable only when specifically stated.

Related tags

Opening LoanCapital BalanceConceptualPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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