"the balance to be treated as loan to be paid after a year along with interest @6%"
how to deal this interest at the time of retirement 

Dear Student


At the time of retirement, the amount due to retiring partner is calculated and paid. Now if suppose part amount is paid and part is carried forward in the books as a loan to be paid later on. Then the amount paid later on is paid along with some interest as we are paying late.

The interest is calculated at the rate given for the time period after which payment is done from retirement.
Suppose total amount due on retirement is 1,00,000/- and we have paid 50,000/- initially and Rs 50,000/- is paid after 1 year along with interest @ 6%.
Therefore journal entries for the transactions above shall be:

Journal in the books
Date	Particulars		Debit	Credit
	Partner's Capital A/c	Dr.	100,000
	To Bank A/c			50,000
	To Partner's Loan A/c			50,000
	(Being amount paid and balance transferred as loan)
After 1 Year	Interest on Loan A/c (50,000 x 6%)	Dr.	3,000
	To Partner's Loan A/c			3,000
	(Being Interest due)
	Partner's Loan A/c	Dr.	53,000
	To Bank A/c			53,000
	(Being amount paid along with interest)

And in the books of the firm, the Interest on Loan shall be treated as an expense and shall be charged to profit and loss account.

HOpe this helps
Regards