Question

on amalgamation, partner's loan a/c is transferred to?

Answer 1

Answer:

Partners account

Answer 2

It is transferred to the Partner's Capital A/c.

• This process of venture partnership refers to the combination of dual or additional partnership firms with one another, for constructing a fresh venture.

• In the process, only two firms carrying on similar type of business are amalgamated

• On amalgamation of association firms, the balance on partner's loan account is to be moved to Partners' Capital Accounts in the old benefit sharing proportion