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Balance of loan account should be transferred to which account if any loan or advance is provided by a partner?

36. Balance of loan account should be transferred to which account if any loan or advance is provided by a partner?

1. Balance Sheet Assets Side
2. Partners' Capital Account
3. Balance Sheet Liability Side
4. Partner's Liability Account

Answer: C) Balance Sheet Liability Side

Explanation:

If any loan or advance is provided by the partner then the balance of it will be transferred to Balance Sheet Liability Side.