Alerts Wishlist Cart

What is the effect of a partner's loan to the firm on the capital accounts?

Practice Questions

Q1
What is the effect of a partner's loan to the firm on the capital accounts?
  1. Increase in capital account
  2. Decrease in capital account
  3. No effect on capital account
  4. Transfer to drawings account

Questions & Step-by-Step Solutions

What is the effect of a partner's loan to the firm on the capital accounts?
  • Step 1: Understand that a partner's loan is money that a partner gives to the business.
  • Step 2: Recognize that this loan is considered an investment in the business.
  • Step 3: Know that when a partner invests money into the business, it increases the capital account.
  • Step 4: Conclude that the capital account reflects the total amount of money invested by the partners.
No concepts available.
Biology (School & UG)
Biology (School & UG)
Chemistry (School & UG)
Chemistry (School & UG)
Civil Engineering
Civil Engineering
Commerce & Accountancy
Commerce & Accountancy
Computer Science & IT
Computer Science & IT
Current Affairs & GK
Current Affairs & GK
Data Structures & Algorithms
Data Structures & Algorithms
eBooks
eBooks
Electrical & Electronics Engineering
Electrical & Electronics Engineering
English (School)
English (School)
General Aptitude
General Aptitude
General Knowledge
General Knowledge
General Knowledge & Current Affairs
General Knowledge & Current Affairs
Languages & Literature
Languages & Literature
Law & Legal Studies
Law & Legal Studies
Major Competitive Exams
Major Competitive Exams
Mathematics (School)
Mathematics (School)
Mechanical Engineering
Mechanical Engineering
Medical Science
Medical Science
Physics (School & Undergraduate)
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Quantitative Aptitude & Reasoning
Social Science (School)
Social Science (School)
Technical
Technical
Verbal and Reasoning
Verbal and Reasoning
Vocational & Skill Development
Vocational & Skill Development
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely