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Partnership loan

This query is : Resolved 
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(Querist)
02 May 2021 SIR HOW CAN A PARTNER GIVE LOAN TO FIRM AS PARTNERSHIP FIRM IS NOTHING BUT PARTNERS HIMSELF AS PARTNERSHIP FIRM IS NOT SEPARATE ENTITY.. SO HOW CAN A PARTNER LEND MONEY TO HIMSLEF
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CA PARTH SHAH

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CA PARTH SHAH (Expert)
03 May 2021 Yes Partner can give loan to partnership firm.

It's psuedo capital from the partner to the firm.

Bank will consider it as part of capital only in case of financing from Bank
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