The usual way of settling the loan is by debiting the account and crediting the account.

bank

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liability

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partner's capital

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realisation

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Solution

The correct options are
A bank
D realisation
The amount paid for discharging liabilities is recorded by debiting the realisation account and crediting the bank account.
Example - loan settlement

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Similar questions

Q. The payment of loans due to partners is done by debiting ________ A/c and crediting ________ A/c.

Q. When we pay realisation expenses, we debit the account and credit the account.

Q. When required amount for premium for goodwill is not brought in by new partner, goodwill account is raised in the books of the firm by debiting goodwill account and crediting partners capital account in old profit sharing ratio and written off in ______ if it agreed not show goodwill in the books of the firm OR ALTERNATIVELY premium for goodwill should be adjusted through partners capital account by debiting new partners share of goodwill to his account and crediting old partners capital accounts in _________.

Sohan’s A/c is debited by Rs. 2,500 while it was to be debited by Rs. 3,500 and Mohan’s A/c is debited by Rs. 3,500 while the same was to be debited by Rs. 2,500. For this error, which of the following can be a rectifying entry?

Manish A/c is credited by Rs. 4500 while Manish A/c was to be debited by the same amount. Which of the following is correct?

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The usual way of settling the loan is by debiting the account and crediting the account.

The correct options are A bank D realisationThe amount paid for discharging liabilities is recorded by debiting the realisation account and crediting the bank account. Example - loan settlement

The correct options are
A bank
D realisation
The amount paid for discharging liabilities is recorded by debiting the realisation account and crediting the bank account.
Example - loan settlement