(ii) Anita, Benu and Chitra dissolve their partnership firm. Anita had taken a loan of ₹ 10,000 from the firm.
What will be the entry to settle Anita’s Loan on the dissolution of the firm?

(a) Debit Realisation A/c; Credit Anita’s Loan A/c
(b) Debit Anita’s Loan A/c; Credit Realisation A/c
(c) Debit Anita’s Capital A/c; Credit Anita’s Loan A/c
(d) Debit Bank A/c; Credit Anita’s Loan A/c

Solution