alleryIf the retiring partner's dues are not paid immediately, they are transferred to
ARetiring Partner Loan A/c
BProfit & Loss A/c (typical)
CGoodwill A/c (typical)
DReserve (typical) (typical)
Answer & Solution
Correct answer: A. Retiring Partner Loan A/c
1. Unpaid retirement dues represent a debt of the firm to the retiring partner.
2. They are transferred to the retiring partner's loan account.
3. Interest at 6% p.a. or agreed rate is allowed under the Partnership Act on unpaid balance.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 4 "Reconstitution of Partnership (Retirement of Partner)", §4.3 ¶§4.3_
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