banner_ad

Partner capital withdrawel

This query is : Resolved 
Profile Image

Profile Image

(Querist)
13 March 2020 Members...

I have come across one client who runs a partnership firm in trading of medical equipment.

Partners very frequently withdrawing good amounts and putting into their other business and again bring back .
Like that frequently transactions are taking place and most of time their account in main business shown debit balance of huge amount.

some time they transfer huge amount as loan to their friend circle and bring back after sometime.

I want to know legal provision on such transactions.
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
13 March 2020 Partners very frequently withdrawing good amounts and putting into their other business and again bring back . Such transactions no problem. Cash withdrawal and bring back should not be 2 lacs and above.
Loans to friends should be treated as withdrawal and it should not be in cash exceeding the limit.
Loans in the books of accounts not allowed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details