Q.The balance of the capital account of retired partner is transferred to his ______ account if it is not paid.

If the amount due to a retiring partner is not paid in cash, it is transferred to his Loan Account, on which he is generally entitled to interest until it is settled.

After all adjustments (revaluation profit/loss, reserves, goodwill), the retiring partner's Capital Account shows the final amount payable to him. The firm may:

• pay it immediately in cash/bank, or
• if it cannot pay at once, transfer the balance to the Retiring Partner's Loan Account.

The entry is:

| Particulars | Dr (₹) | Cr (₹) |

| --- | --- | --- | …