Interest due on loan amount is credited to retiring partner'saccount.

capital

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interest

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loan

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current

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Solution

The correct option is C loan
Interest due on loan amount is credited to retiring partner`s loan account.
The journal entry is :
Interest on Loan A/c Dr.
To Retiring Partner’s Loan A/c
(Interest payable on retiring partner’s loan charged to loan account)

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Similar questions

Interest due on loan amount is credited to ___

When the amount due to retiring partner is paid by cheque, which account is credited?

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