Question

Without any instructions regarding settlement of amt due to retiring partner, Partner's loan a/c should be opened or amt should be directly paid off (& reduce cash bal by that amt in balance sheet) ?​

Answer 1

if the business already having cash balance more and instruction is given then only payment will be done in cash but if it is said that cash balance is low so its sure that payment will be done by opening loan a/c.

Explanation:

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