When is a claim of retiring partner transferred to Loan account which accounts it is credited to?

Retiring Partner Loan A/c

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Cash A/c

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Bank Loan A/c

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None of the above

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Solution

The correct option is D Retiring Partner Loan A/c
Journal Entry for settlement to Retiring Partner against Loan:
Retiring Partner Capital A/c Dr
To Retiring Partner Loan A/c

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