contribution to capital account

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2010 Partners on starting a firm, instead of depositing cash to office account, spent money themselves for office exps. Now while writing account, are we to mention that they have deposited cash or can we credit expenditre and debit, partners capital account directly. In this way, we can reduce some entries. Kindly guide.

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)

01 July 2010 yes you can pass journal entry debiting expenditure acc and credit partners capital account

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2010 can they also contributing to capital account by deposit cash of more than 20000 in capital account after withdrawing amount from their personal bank account

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)

04 July 2010 yes, you can make capital contribution above rs.20,000/- it is not loan given to firm sec.269SS is not applicable

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