Income tax


(Querist)
19 July 2019
I HAVE ONE PARTNERSHIP FIRM NAMELY m/S. XYZ HAVING 2 PARTNERS. The partners are also supplier of goods in which xyz firm is trading.The partnes selling the goods to the firm in which they are partners. The accumulated balance which is payable by the firm to its partnes is more than 1 croers to the parters.
Now the firm is saying that the amount payable to partnes will be transferred to partners capital accounts as capital account by just passing the journal enty.

Can we do this.
What is the effect if we do this.



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