Partner of an LLP paid for the 2 laptops (Fixed Assets). Due to financial difficulty, the LLP is not able to reimburse the partner. Can a partner give loan LLP and the same amount (Loan amount) LLP can use to reimburse the partner?
What will be the accounting entry for this if this is possible?
(1) Laptop A/C (Under Fixed Assets) .............. Dr.
To Supplier A/C .......................................... Cr.
(At the time of Laptop Purchase)
(2) Supplier A/C ..................................... Dr.
To Partner Loan A/C (Under Unsecured Loans) ........ Cr.
(At the time of payment)
(3) Partner Loan A/C (Under Unsecured Loans) ........ Dr.
To Bank A/C ................................................................ Cr.
(At the time of reimburse of loan amount)
O P Bagla & Co LLP
New Delhi
CA Inter
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R P S K & Associates
Nashik
CA Inter
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CAclubindia
