Partnership Accounting

We are already running a Private company and we have started a partnership (Same Directors of the company are partners under Partnership) for doing another service.

 

So if we transfer some cash/bank balances from our company bank account to our Parnership bank account.

 

How it should be accounted in both the books?

Replies (3)

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details