Partnership Accounting

Dear John,

I think u mean to say "Loan"

IN THE BOOKS OF COMPANY

Loan to M/s ABC  ......... Dr

           To Bank A/c

IN THE BOOKS OF FIRM

Bank A/c...............Dr

         To Loan From XYZ Pvt. Ltd.

Care to be taken

1) It should be by account payee check only

2) AS -18 requires disclosure in the notes to accounts of Balance Sheet of both Company & Firm

3) Loan may or may not carry interest, but better option is to give at some interest rate rather then giving interest free loan.

4) Tax auditor will mention in his report.

5) Due consideration should be given to TDS provision if it carries interest.

Treatment Provided by Mr. Amir is correct.

regards,

ratan

Originally posted by : Amir
	Dear John, I think u mean to say "Loan" IN THE BOOKS OF COMPANY Loan to M/s ABC  ......... Dr            To Bank A/c IN THE BOOKS OF FIRM Bank A/c...............Dr          To Loan From XYZ Pvt. Ltd. Care to be taken 1) It should be by account payee check only 2) AS -18 requires disclosure in the notes to accounts of Balance Sheet of both Company & Firm 3) Loan may or may not carry interest, but better option is to give at some interest rate rather then giving interest free loan. 4) Tax auditor will mention in his report. 5) Due consideration should be given to TDS provision if it carries interest.

Perfact answer