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A partner’s loan account has a balance of ₹1,10,000. If ₹30,000 is paid from this amount, what will be the new balance?

Answer and explanation

Correct answer: ₹80,000

New balance = Opening balance − Payment = ₹1,10,000 − ₹30,000 = ₹80,000. A payment reduces the amount payable to the partner, so option B is correct. ₹90,000 is incorrect because it reflects a deduction of only ₹20,000. Exam tip: Whenever part of a partner’s loan is repaid, subtract the repayment from the outstanding loan balance.

Related tags

Partner Loan AccountRetirement Of PartnerLoan RepaymentReconstitution Of PartnershipAccount BalancePartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A Partner

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