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A loan given by the firm to a partner is repaid. The entry is:
ADr Capital, Cr Loan to Partner
BDr Loan to Partner, Cr Bank
CDr Bank, Cr Loan to Partner
DDr Realisation, Cr Loan to Partner
Answer & Solution
Correct answer: C. Dr Bank, Cr Loan to Partner
Cash comes in, so Bank is debited while the loan to the partner is credited.
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