Credit card loan

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accountant
4 Points Posted on 12 September 2020
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?
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On 12 September 2020 at 14:41 Report
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Quick Summary
This discussion explores the accounting treatment for a partner using a personal credit card loan to fund a partnership firm. The consensus is that it should be treated as a loan from the partner to the firm. While eligible for repayment, interest is restricted to 12%, and this should be reflected in the partnership deed.

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CA Final Student
120 Points Posted on 12 September 2020
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%.
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On 12 September 2020 at 15:03
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Tax and Business Consultant
11616 Points Posted on 12 September 2020
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..
1 Reply
On 12 September 2020 at 16:24

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