What is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account?

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When a partner has a debit balance in the capital account, it means that the partner owes money to the partnership. If the partner then makes a loan to the partnership, it should be offset against the debit balance in the capital account to reduce or eliminate the amount owed. This is in line with the principle of maintaining the capital accounts in the partnership, which tracks each partner's contributions and withdrawals. Option A is incorrect, as the loan transaction should be recognized in the partnership's books. Option C is also incorrect, as charging off the loan to all partners' capital accounts would not reflect the specific contribution or withdrawal of each partner. Option D is not the best choice, as it is not prudent to delay payment of a loan indefinitely or until all other capital accounts are covered.

What Is the Proper Disposition of a Partnership Loan That