![]() The liability of repaying debt rest only with the partner who has taken the debt. Liability of the firm’s debt lies with all the partners jointly as well as individually. Basis of Comparisonĭebts that are owed by a firm to the outsidersĭebts that are owed by a partner to any other person outside the firm. Distinguish between the firm’s debts and the partner’s private debts. The loan is paid in cash after the full filling payment of all external liabilities. (b) When a partner’s loan appears on the liabilities side of the balance sheet, it means that the partner has provided a loan to the business and the business has to pay back the amount which it has got from the partner. (Loan account of partner transferred to partner capital account) In this instance, the loan amount gets transferred to the partners’ capital account. (a) When a partner’s loan is on the asset side of the balance sheet, it means that the partner has borrowed some amount from the business and needs to pay back the same. (b) Liabilities side of the Balance Sheet ![]() On dissolution, how do you deal with the partner’s loan if it appears on the 2nd Puc Accountancy Chapter 5 Notes 2nd Puc Accountancy Chapter 5 Dissolution Of Partnership Firm Part – 1 Notes 2nd Puc Accountancy Chapter 5 Notes Short Questions ![]()
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