Harsh a partners loan of Rs 6000 is settled by paying Rs 5500 explain please in dissolution chapter
Answers
Answered by
0
Answer:
Lack of funds
Explanation:
When a firm is going through dissolution, it tries to settle all Loans and credits, in order to close the books, without opening another account at that last moment. Hence, sometimes, a Partner's loan is settled off at a lower amount l, to balance the loss of funds, or as an adjustment, which would be discussed with the partner. This is why Harsh's loan of 6000 was settled off at 5500.
Answered by
8
Answer:
harsh loan a/c Dr 6000
to cash a/c. cr 5500
to realisation a / c cr 500
hope it will help you, if yes please give me a thanks. study hard
Similar questions