if partners drawings during the year>capital contribution during the year then whether there is any violation under IT act /Partnership act?at the end of the year there balance is cr?
Whether Capital-Dr balance at a particular point of time in a year violate any law.
If Partnership Deed is silent on this issue then NO violation. In case PARTNERSHIP DEED restricts overdraft then it is a violation of mutual consent. On the date of such said to be overdraft the salaries and interest upto that date must be considered to know if it is a actually a Overdraft or not.