What is the described sequence for settling the amount due to a retiring partner?
1
Decide on payment installments, Transfer the amount to the loan account, Pay installments with interest
2
Pay part of the amount in cash, Transfer the remaining balance to the loan account, Ascertain the total amount due
3
Ascertain the total amount due after all necessary adjustments, Determine the mode of settlement (lumpsum, installments, or part cash/part loan), Record the necessary journal entry based on the chosen mode of settlement
4
Transfer the amount to the retiring partner's loan account, Ascertain the total amount due, Pay the amount from the loan account