Transfer of Loan on Death of Director

This discussion addresses the accounting treatment for a loan provided by a director to a private limited company when that director passes away. Specifically, it covers the scenario where the deceased director's loan is transferred to the surviving director. The proposed entry involves debiting the wife's (deceased director's) loan account and crediting the husband's (surviving director's) loan account, thereby increasing the company's liability to the husband and closing the wife's account.