partnership firm, one of the partner is taken personal loan from his credit card and that amount utilized in there business, than how to account it and it's eligible for repayment with interest from partnership firm?
In my opinion it shall be considered as loan given by partner to the firm. And deduction of interest shall not be allowed in excess of 12%. Yes, it's eligible for repayment after amendment in partnership deed but interest shall be restricted to 12%.
It's just introduction of current capital in Partnership firm, whether its from own fund of partner or from Loan... Treatment have to be Given as same like Current capital in Books of firm..
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