Question

Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm. Rohan's loan to the firm will be :
(A) Credited to Rohan's Capital Account.
(B) Debited to Realisation Account.
(C) Credited to Realisation Account.
(D) Credited to Bank Account.​

Answer 1

Answer:

Explanation:

Change in the profit sharing ratio among the partners is one of the mode of reconstitution of partnership firm. Sometimes the partners of a firm may decide to change their existing profit sharing ratio. For example, Ram, Mohan and Sohan are partners in a firm sharing profits in the ratio of 3:2:1. With effect from April 1, 2007, they decided to share profits equally as Sohan brings in additional capital. This results in change in the existing agreement leading to reconstitution of the firm.

Answer 2

Answer:

At the time of dissolution of the partnership firm the rohan's loan to the firm will be credited to Rohan's Capital account.

Explanation:

Rohan's loan to the firm i.e. it is his individual loan which he has to pay alone and by himself only no other partners ( mohan or Sohan ) is going to pay for Rohan's loan.

so, Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm. Rohan's loan to the firm will be Credited to Rohan's Capital Account. (option A) because a

• partners loan is  debit to a capital account which means the business doesn't owe to its owners that results in reduces the business's capital,
• and on the other hand a credit to a capital account means the business owes more to its partners or owners which automatically  increases the business's capital).

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