25 October 2021
Sir, A partnership firm cash withdrawal some amount one of the partner after negative balance show in partner capital account. Question: Negative balance Amount partner capital account show procedure in balance sheet.
02 November 2021
It is a matter of presentation.
option 1 - Capital account debit balance can be shown on asset side.
option 2- Also,can be shown on liability side with minus sign.
I prefer option 2 which is in line with Balance sheet format in ITR
CAclubindia
