Question 25 of 53beginner🧠 RememberFill in the Blanks1 mark

Partner’s loan is _____ (transfered/not transfered) in the (Realisation Account).

Correct Answer

not transfered

Exercise: Test your Understanding – III | Q: 9 | (Page 17)
For More Understanding

Explanation

According to the NCERT textbook context, Partner's loan is not transferred to the Realisation Account. This is because partner's loan is an internal liability of the firm, owed to a partner. Only external liabilities like creditors and bills payable are transferred to the Realisation Account. Partner's loan remains as a separate account and is paid off directly through the Bank Account after the realization of assets.