Question:medium

On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:

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Partner’s loan is treated as a liability, not capital.
Updated On: Jan 14, 2026
  • Realisation A/c
  • Mohan’s Capital A/c
  • Mohan’s Current A/c
  • Bank A/c
Show Solution

The Correct Option is D

Solution and Explanation

A loan represents an obligation requiring cash settlement.
Entry: Debit Mohan’s Loan Account and Credit Bank Account
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