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In this below attached question z's loan is repaid or not and is it credited to cash acc and is it credited to partners cap acc and loan from Mrs x will be transferred to partners cap acc
Answers (8)
In this Question loan from D has been paid through realisation account by debiting and crediting and Kumar's loan has been credited to his capital account since the firm is liable to pay him towards loan advanced by him ( this entry can also be done but more suitably you can simply pass the entry by debiting Kumar's loan and crediting bank account
Himanshu Somani
In this Question loan from D has been paid through realisation account by debiting and crediting and Kumar's loan has been credited to his capital account since the firm is liable to pay him towards loan advanced by him ( this entry can also be done but more suitably you can simply pass the entry by debiting Kumar's loan and crediting bank account
So loan from D is not shown in partners cap acc Kumar's loan acc we can credit it to cash acc and partners cap acc i.e either ways
Thread Starter
Miradevi SSo loan from D is not shown in partners cap acc Kumar's loan acc we can credit it to cash acc and partners cap acc i.e either ways
But why loan from D will be shown in partner's capital a/c ? He is not a partner and neither any partner agreed to discharge his loan ... it's a third party liability and Kumar's loan you can make any of those two entries ; answer will be the same
Thread Starter
Miradevi SOk ok but in previous sum loan from Mrs x is transferred to partners cap acc so I had doubt.
Yeah but in that sum one of the partner agreed to discharge the third party liability that's why it was credited to partner's capital account