State giving reason to which account interest on loan taken by a partner from the firm is debited and credited if partner’s capitals are fixed.
State giving reason to which account interest on a loan taken by a partner from the firm is debited and credited if the partner’s capital are fixed.
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Interest on Loan taken by a partner from the firm is debited to Partner’s Current Account since partner’s capitals are fixed and credited to Profit and Loss Account since it is a gain to a firm.
Anurag Pathak Changed status to publish April 9, 2023