a partnership firm two partners working.one of the partner brought capital by cheque.another partner brought capital by cheque(cash) and fixed assets rs:40,000/-.but assets value rs:40,000/- payment made by partner through cash mode.(40a3 rs:10,000/- limit per day.
question:
partner above mentioned assets value accepted in partnership firm under it act.
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Partner introduced capital by fixed assets but payment through on cash mode
Replies (2)
Quick Summary
Partner had introduced fixed asset from his own funds and not through the funds of partnership business. so disallowance under 40 a 3 won't arise since nothing had gone through the partnership business.
it is immaterial how partner purchased the asset.
it is immaterial how partner purchased the asset.
Partner introduced capital by fixed assets but payment through on cash mode https://www.caclubindia.com/forum/details.asp?mod_id=583097
Its necessary that bill of asset purchased made in the name of partner i.e. in order to treat it as his personal asset and then introduced by him in the books of partnership i.e entry of asset purchase not recorded in the books instead following entry should b recorded in the books of the firm:
Asset A/c Dr.
To Partner's Capital A/c
Then it is irrelevant that in what mode partner purchased asset personally.
40A (3) will not b applicable on that.
Its necessary that bill of asset purchased made in the name of partner i.e. in order to treat it as his personal asset and then introduced by him in the books of partnership i.e entry of asset purchase not recorded in the books instead following entry should b recorded in the books of the firm:
Asset A/c Dr.
To Partner's Capital A/c
Then it is irrelevant that in what mode partner purchased asset personally.
40A (3) will not b applicable on that.
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