ACCOUNTS BOOK ENTRY

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This discussion addresses how to account for a car purchased by a partner, with payments made from both the firm's bank account and a personal bank loan. The advice suggests treating payments from the firm's account as partner drawings and adjusting the partner's capital account accordingly. The core question is whether this car can be entered as a fixed asset in the firm's books, given the mixed funding and loan structure.

umesh kumar

umesh kumar (Querist)
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25 June 2022 HELLO SIR

MY FIRM IS PARTNERSHIP FIRM AND FEW DAYS BACK I BOUGHT A NEW CAR WITH PERSONAL (PARTNER) NAME. SIR SOME PAYMENT OF CAR WE PAID FROM FIRM BANK ACCOUNT AND SOME PAYMENT WE MADE THROUGH BANK LOAN. BUT BANK LOAN IS PARTNER NAME NOT FIRM NAME. HOW WE MADE ENTRY OF THE SAME IN OUR ACCOUNT BOOK. KINDLY CLEAR MY ISSUE EARLY AS POSSIBLE.
SIR PLEASE TELL ME CAN I ENTER THIS CAR AS A FIXED ASSETS IN MY FIRM BOOKS ? IF YES PLEASE TELL ME HOW I CAN ADJUST PAYMENT IN DEALER ACCOUNT WHICH I PAID FROM MY FIRM BANK ACCOUNT AND THROUGH BANK LOAN ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2022 Payment made from firm's bank account show it as partners drawings.

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CA Puja Sharma

CA Puja Sharma (Expert)
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25 June 2022 Adjust the payment made from the firm's account with the Partner's capital account.

umesh kumar

umesh kumar (Querist)
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25 June 2022 SIR CAN I ENTER THIS CAR AS A FIXED ASSETS IN MY FIRM BOOKS ? IF YES PLEASE TELL ME HOW I CAN ADJUST PAYMENT IN DEALER ACCOUNT WHICH I PAID FROM MY FIRM BANK ACCOUNT AND THROUGH BANK LOAN ?

umesh kumar

umesh kumar (Querist)
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28 June 2022 SIR CAN I ENTER THIS CAR AS A FIXED ASSETS IN MY FIRM BOOKS ? IF YES PLEASE TELL ME HOW I CAN ADJUST PAYMENT IN DEALER ACCOUNT WHICH I PAID FROM MY FIRM BANK ACCOUNT AND THROUGH BANK LOAN ?

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