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If a partner is insolvent but has given loan to firm, will we repay him?

Aman Mahajan

CA Final

★ 19K+

11-Sep-21 23:10

478

Answers (4)

Can I explain it in Hindi?

Sejal Shivani

CA Foundation

★ 5K+

12-Sep-21 11:10

Yes, we have to repay it back. Maybe not immediately after his/her retirement, but as her the loan agreement they had between. Or they can consider ask the partner for time to repay it back, if the agreement is to repay immediately. If not the loan may not be repaid until the end of the loan term...!

Pundareekaksha Guptha P

CA Inter

★ 210

12-Sep-21 11:28

Loan from partner to the firm is an external liability, so that needs to be settled as per the agreement even though partner is insolvent

Sudha Reddy

CA Final

★ 20K+

13-Sep-21 12:06

Sejal Shivani

Can I explain it in Hindi?

Yes

Thread Starter

Aman Mahajan

CA Final

★ 19K+

14-Sep-21 11:41