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.