Question

On dissolution of partnership firm spouse loan is transferred to?​

Answer 1

Answer:

what is the meaning of question ..... ....

Answer 2

This answer is explained with the journal entry for better understanding.

Explanation:

If the partner has given any loan to the firm, his loan will be paid off after all the outside liability paid are paid in full. Therefore the partner's loan account is not transferred to the realisation account and his loan account is prepared separately and paid off by passing the following entry:

                       Partner's Loan A/c Dr.

                                  To Cash/Bank A/c