Question

Give the journal entry for the treatment of partner's loan appearing on the assets side of the balance sheet, on dissolution of a partnership firm.

Answer 1

JOURNAL
$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Dr. (Rs)}& \text{Cr. (Rs)}\\ \left(i\right)& \text{Realisation A/c}Dr.& & -----& \\ & \text{To Partner's Loan A/c}& & & -----\\ & \text{(Partner's loan transferred to realisation account)}& & & \\ \left(ii\right)& \text{Bank A/c}Dr.& & -----& \\ & \text{To Realisation A/c}& & & -----\\ & \text{(Partner's loan amount received)}& & & \end{array}$