Transfering Loans to a Partner in Partnership

Regarding firm; there is no problem. 

Person(P)  has given loan to second partner (SP)  to increase his (SP's) capital in the firm.

In his personal return and balance sheet SP has to show it as loan from P. 

This is without account payee cheque and hence subject to penalty proceedings in the hands of  SP. 

HII

HERE THIS IS POSSIBILE ONLY IN SUCH CASE WHERE PARTNER HAD PAID IT OFF FROM HIS SAVING A/C ......

THEN IN THE BOOKS OF FIRM WE CAN PASS A ENTRY

           UNSECURED LOAN A/C DR.

             TO PARTNERS CAPITAL A/C

THUS RESULT IN CAPITAL CONTRIBUTION BY PARTNER...