Question

what will be the journal entries when x provides loan amounting ₹50,000 to the partnership firm?
there are three partners in the firm- x, y, and z. And there profit and loss sharing ratio is 1:1:4

Answer 1

Bank A/c Dr. 50,000
To x's loan A/c 50,000
(being 50,000 recieved from x as a loan)

Interest on partner's loan A/c Dr.3000
To x's loan A/c. 3000
(being the interest on loan provided @6% p.a)

Profit and loss A/c Dr. 3000
To interest on partner's loan A/c 3000
(being interest on loan transferred to profit and loss account)

i hope this helps.