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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.
Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
Capital is the investment done by the partner’s themselves and thus at the time of dissolution of the partner the firm pays off the capital to the partners only after the settlement of the other liabilities including the loan given by any partner in proportion to their capital.
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Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): Partner's loan account is prepared before partners' capital accounts.
Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner's loan.
Explanation:
When a partnership firm is dissolved, the assets and liabilities are settled among the partners. The process of settlement involves the preparation of various accounts, including partner's loan account and partner's capital account.
Partner's Loan Account:
- In a partnership, partners may lend money to the firm for various reasons, such as initial capital contribution or additional funds required by the firm.
- The partner's loan account records the amount of money lent by each partner to the firm.
- This account reflects a liability for the partnership firm as it represents the amount owed to the partner.
- During the dissolution of the partnership, the partner's loan is repaid before the partner's capital is settled. This is because the partner's loan is considered a priority liability that needs to be cleared before distributing the remaining capital among the partners.
Partner's Capital Account:
- The partner's capital account represents the partner's ownership interest in the partnership.
- It records the initial capital contribution made by the partner, as well as any additional investments or withdrawals.
- At the time of dissolution, the partner's capital account is settled by distributing the remaining capital among the partners after clearing the partner's loan.
Explanation of Assertion (A) and Reason (R):
- Assertion (A) states that the partner's loan account is prepared before partners' capital accounts, which is true.
- Reason (R) states that at the time of dissolution, capitals are paid off only if any balance is left after payment of the partner's loan, which is also true.
- The reason for preparing the partner's loan account before partners' capital accounts is that the loan represents a liability that needs to be settled first.
- If there is any remaining capital after clearing the loan, it is then distributed among the partners based on their capital contributions.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner's loan.
Explanation:
When a partnership firm is dissolved, the assets and liabilities are settled among the partners. The process of settlement involves the preparation of various accounts, including partner's loan account and partner's capital account.
Partner's Loan Account:
- In a partnership, partners may lend money to the firm for various reasons, such as initial capital contribution or additional funds required by the firm.
- The partner's loan account records the amount of money lent by each partner to the firm.
- This account reflects a liability for the partnership firm as it represents the amount owed to the partner.
- During the dissolution of the partnership, the partner's loan is repaid before the partner's capital is settled. This is because the partner's loan is considered a priority liability that needs to be cleared before distributing the remaining capital among the partners.
Partner's Capital Account:
- The partner's capital account represents the partner's ownership interest in the partnership.
- It records the initial capital contribution made by the partner, as well as any additional investments or withdrawals.
- At the time of dissolution, the partner's capital account is settled by distributing the remaining capital among the partners after clearing the partner's loan.
Explanation of Assertion (A) and Reason (R):
- Assertion (A) states that the partner's loan account is prepared before partners' capital accounts, which is true.
- Reason (R) states that at the time of dissolution, capitals are paid off only if any balance is left after payment of the partner's loan, which is also true.
- The reason for preparing the partner's loan account before partners' capital accounts is that the loan represents a liability that needs to be settled first.
- If there is any remaining capital after clearing the loan, it is then distributed among the partners based on their capital contributions.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Partner ’s loan account is prepared before partners’ capital accounts.Reason (R): At the time of dissolution, capitals are paid off, only if any balance is left after payment of the partner ’s loan.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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