Negative balance of all the partner's in their capital a/c
This query is : Resolved
13 October 2018
One of my client which is a partnership firm has to partners. due to heavy loss in the first year itself both their capital account became negative after transferring of loss to their respective capital account. how to show both capital account in balance sheet and accounts and whether it is allowed under Income tax and any other issues relating to it. the firm has bank loan
thanks in advance. waiting for your reply
thanks in advance. waiting for your reply
13 October 2018
As per my view.,
You don't be transfer the Share amount directly into Capital Account. Prepare "Partner Current Account - Under Capital" then Account... Also transfer the Negative value to "Current Asset" head...
Wait on further replies from Our Experts...
You don't be transfer the Share amount directly into Capital Account. Prepare "Partner Current Account - Under Capital" then Account... Also transfer the Negative value to "Current Asset" head...
Wait on further replies from Our Experts...
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